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PSU bank stocks in limelight; shares gain up to 8.5%

Parliament's approval has been sought for 'meeting additional expenditure towards recapitalisation of Public Sector Banks through issue of government securities' said ministry

Press Trust of India  |  New Delhi 

PSU, banks, merger

Shares of state-run banks surged up to 8.5 per cent today after the finance ministry sought Parliament's nod for extra expenditure of Rs 80 billion towards their through bonds.

The scrip of soared 8.50 per cent, surged 8.33 per cent, gained 5.97 per cent, went up 3.83 per cent and jumped 3.77 per cent on BSE.

Among others, shares of Oriental Bank of Commerce rose 3.71 per cent, Canara Bank advanced 2.69 per cent, (2.39 per cent), (1.89 per cent) and (1.72 per cent).

"Release of the next instalment of funds earmarked for bank proved to be a shot in the arm for PSBs, especially as some of the weak banks had been hauled up by RBI for prompt and corrective action," said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.

Parliament's approval has been sought for "meeting additional expenditure towards of Public Sector Banks through issue of government securities", said the finance ministry document.

The additional expenditure of Rs 80,000 crore towards bank through issue of government securities will be matched by additional receipts on issues of securities to the banks and "will not entail any cash outgo", it added.

First Published: Thu, January 04 2018. 21:37 IST
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