Banks gain; Nifty Bank, Nifty PSU Bank indices up nearly 3%

SBI, ICICI Bank, Canara Bank, IndusInd Bank, IOB, BOI, Oriental Bank and Andhra Bank were up 3%-6% on NSE.

Banking shares are back in focus with the Nifty Bank and Nifty PSU Bank indices up nearly 3% each on the National Stock Exchange (NSE) in noon deal trade.

At 01:43 pm, Nifty PSU Bank index up 2.6%, while Nifty Bank index up 2.5% compared to a 1.9% rise in the Nifty50 index.

State Bank of India (SBI), ICICI Bank, Canara Bank, IndusInd Bank, Indian Overseas Bank, Oriental Bank of Commerce, Andhra Bank and Bank of India were up 3%-6% after the Private forecasting agency Skymet on Tuesday raised India's monsoon forecast to 109% of the long period average from 105% on the back of a waning El Nino.

According Reuters report, Vinod Rai, the veteran bureaucrat appointed this year to run the new Banks Board Bureau, told news agency the government stood ready to inject fresh funds beyond the $3.7 billion earmarked in the 2016/17 budget. CLICK HERE TO READ FULL REPORT.