New Delhi, Jan. 8 -- Most Indian banks recorded an increase in market capitalisation during the October-December quarter, supported by festive season demand and cuts in the goods and services tax (GST), according to S&P Global Market Intelligence data.

Seventeen of the top 20 listed banks reported gains in market capitalisation after domestic demand improved following GST reductions announced in September, ahead of the festive season beginning with Diwali and extending through the New Year.

Smaller private-sector banks led the gains after underperforming public-sector lenders in the previous quarter. IDFC First Bank Ltd. posted a 43.8 per cent jump in market capitalisation during the quarter, moving to 13th position from 17th earlier. F...