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Small PSU banks rally; Dena Bank, UCO Bank up over 9%

Vijaya Bank, Allahabad Bank, IDBI Bank, IOB, United Bank and Syndicate Bank were up 5% and 7%.

SI Reporter  |  Mumbai 

Bank consolidation: Merger by size no quick fix

Shares of small-sized public sector undertaking (PSU) banks have rallied up to 15% on reports that the government is working on consolidation of banks.

and surged 15% and 12%, respectively, on the BSE. Vijaya Bank, Allahabad Bank, IDBI Bank, Indian Overseas Bank, United Bank of India and Syndicate Bank were up between 5% and 7%, against 0.21% rise in the S&P BSE Sensex at 02:41 pm.

The government is "actively working" towards consolidation of banks, said Finance Minister Arun Jaitley on Monday.CLICK HERE TO READ FULL REPORT

Meanwhile, the Reserve Bank of India (RBI) on Tuesday said its internal advisory committee (IAC) had identified 12 accounts that covered about 25% of the banking system’s non-performing assets for immediate resolution under the Insolvency and Bankruptcy Code.

“Even the large stressed companies need a 30-80% reduction in interest burden to fully cover interest at current profitability.

Therefore, stress resolution will need additional provisioning and capital. ICICI Bank is the only corporate lender that appears comfortable on capital,” Credit Suisse said in a report.

COMPANY LATEST PREV CLOSE GAIN(%)
UCO BANK 37.15 33.45 11.06
DENA BANK 36.60 33.45 9.42
ALLAHABAD BANK 72.40 67.10 7.90
VIJAYA BANK 84.10 78.50 7.13
DHANLAXMI BANK 40.40 38.00 6.32
KARUR VYSYA BANK 142.10 134.00 6.04
IDBI BANK 60.50 57.15 5.86
I O B 26.80 25.50 5.10
UNITED BANK (I) 20.15 19.25 4.68
PUN. & SIND BANK 55.05 52.60 4.66
SYNDICATE BANK 81.05 77.50 4.58
BANK OF MAHA 31.00 29.75 4.20
ANDHRA BANK 60.60 58.25 4.03
CORPORATION BANK 52.50 50.70 3.55
CENTRAL BANK 102.00 99.15 2.87
UNION BANK (I) 155.15 150.95 2.78
INDIAN BANK 306.20 298.95 2.43
PUNJAB NATL.BANK 152.25 148.65 2.42
BANK OF BARODA 173.40 169.75 2.15
J & K BANK 87.55 85.75 2.10

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