Budget 2023: Banks surge on pro-growth measures, support for digital payments

Shares across the banking pack surged in trade on Wednesday, buoyed by the strong thrust of the government to boost consumer spending, which will effectively drive credit growth.

The Nifty Bank index surged 3% to 41865.75. Shares of Axis Bank, Bandhan Bank, HDFC Bank, IndusInd Bank, Kotak Mahindra Bank, and ICICI Bank rose between 1-4% each.

The government has significantly increased the capital expenditure for FY24 by 33% to Rs 10 lakh crore, giving greater emphasis to infrastructure and railways.

The government has also relaxed income tax rates, including that for the high-end salaried class, which gives more money in the hands of people to spend.

The government will also continue to provide financial support to boost digital payments. In 2022, digital payments rose 76% by transaction count.