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Yes Bank led the rally with a sharp 14 per cent jump in trade, while IndusInd Bank jumped 11 per cent Axis Bank and Kotak Mahindra were up 9 per cent in trade.
PSU Banks joined the party with State Bank, Punjab National Bank, Bank of India and Canara Bank all rallying more then 4%.
In a press conference scheduled late on Wednesday, Raghuram Rajan permitted banks to borrow more in dollars. Banks are now allowed to raise foreign debt to the extent of 100 percent of their tier I capital, as against the 50 per cent currently.
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