Nifty Bank rallied 12.48% this year despite liquidity crisis. Here are the major contributors

Nifty Bank has surged the most on the NSE in the last three years, about 69 percent. This year, Nifty Bank has rallied 12.48 percent despite the sector being hit by a severe liquidity crisis while it has risen 14.22 percent in the last one year. The index rose 359 percent in the last 10 years, higher than all the sectoral indices.

The biggest gainer for the index in the last 3 years has been HDFC Bank while the biggest loser has been Yes Bank. During this time span, HDFC Bank grew 103.35 percent and Yes Bank plunged 57 percent.

HDFC Bank, Kotak Mahindra Bank, ICICI Bank are some of the names that contributed big to the Nifty Bank's gains despite the liquidity crisis that emerged last year post IL&FS default.

Centrum Broking, in its recent research report, said, “We expect our banking coverage universe to report 15 percent YoY/5.6 percent QoQ NII (net interest income) growth leading to an enhancement in NIM (net interest margin). On a YoY basis, the pace of bad loan accretion is likely to decline, with slippages declining YoY by 65 bps to 196 bps in Q1FY20E.”