Today the PSU bank index is looking up 3.75 percent. Today it is the fastest running sector.
Public sector banks are the fastest growing market today. If you look at the reason why these stocks are running, then the PSU Bank index is looking up 3.75 percent. Today it is the fastest running sector. The impact of HDFC Bank’s results and Jet resolution are seen on this sector. Currently, the Bank Nifty is seen around 24,185 with a gain of 2.77 percent.
Jet Airways has got a new owner. Jet Airways creditors on Saturday 17 October 2020 approved the resolution plan of UK’s Kalrock Capital and UAE entrepreneur Murari Lal Jalan, raising hopes of Jet Airways flying again. It is to be noted that Jet Airways has ceased to operate from April 17, 2019 due to financial constraints. Keep in mind that the resolution plan will now go to NCLT.
Travel will be short on about 1 dozen routes, Airforce opens 10% reserve airspace
Now the journey on 1 dozen routes of the country will be shorter. The Airforce has opened up 10 per cent of reserve airspace for civil flights. This will reduce the cost of aviation companies by about 1 thousand crores. Opening airspace will reduce airlines’ FLYING COST. Airlines will get a big relief from this. This aims to cut FLYING COST by Rs 1,000 crore. This includes Mumbai-Srinagar, Lucknow-Jaipur route. Delhi-Srinagar, Bagdogra-Delhi route is also included in this. This will increase the total national airspace by about 3-4 per cent. The move will reduce the cost by about Rs 40,000 per flight. Apart from this, the flight time will also be reduced from 15 minutes to 45 minutes.
This news related to Jet Airways and Aviation is also very important for the banking sector because all banks have a big exposure in Jet Airways. 1,636 crore of SBI in Jet Airways, Yes Bank’s Rs 1,084 crore, PNB’s Rs 7,54 crore, IDBI Bank’s Rs 594 crore, Canara Bank Rs 543 crore, ICICI Bank’s Rs 519 crore, Bank of India 263 crore Rupees, Syndicate Bank’s 1,70 crores and IOB 1,58 crores rupees. With the approval of creditors to the Jet Airways resolution plan, the expectation of these banks to get their money back is increased, due to which the banking shares are today spiraling.