Increase in equity investment of banks by more than 25%
Increase in the attraction of banks towards equity market MUMBAI: Banks' investment in the country's equity markets is also on the rise, according to Reserve Bank of India data. In the fortnight ended August 15, banks' investments in equities rose 2.50 per cent to Rs 1.08 lakh crore. At the end of the fortnight of July 30, the investment figure was Rs 4.50 crore. In addition to initial public offerings (IPOs) and conversion of debt into equities, other factors contributed to the increase in banks' equity investments, RBI sources said. This increase in banks' investment in equities is unprecedented. As equity investments are generally volatile, banks' investments are limited and do not increase significantly in the long run, an analyst said. At the end of the July 15 fortnight, the country's scheduled commercial banks had invested Rs 3 crore, up from Rs 3 crore a year ago, according to RBI data. Although the exact reason for the massive increase in the ...