CNX PSU Bank index gain nearly 3%; Bank of Baroda, Bank of India up 5%

Shares of public sector undertaking (PSU) banks were back into action with most of them trading higher between 2%-6% on the National Stock Exchange (NSE).

Union Bank of India has rallied 6% to Rs 156, while Bank of India (BOI) and Bank of Baroda were up 5% each at Rs 180 and Rs 151 respectively.

State Bank of India (SBI), Oriental Bank of Commerce, Canara Bank, IDBI Bank, Punjab National Bank, Indian Overseas Bank, Allahabad Bank, Andhra Bank and Syndicate Bank were up 2%-4%.

At 1403 hours, CNX PSU Bank index was up 2.8% at 3,318 points as compared to 1% rise each in CNX Nifty and Bank Nifty.

According to Reuters report, Jayant Sinha, Minister of State for Finance said that the Finance Ministry is working on a comprehensive package to help state-run banks, which are saddled with huge bad loans. CLICK HERE TO READ FULL REPORT.

Most of the PSU banks trading near to their respective one-year low market price. Thus far in 2015, Oriental Bank of Commerce, Bank of India, Indian Overseas Bank, Union Bank of India, Canara Bank, Punjab National Bank, Allahabad Bank and Bank of Baroda have seen market value erosion of more than 30% due to rising bad loans. The CNX PSU Bank index had dipped 24% as compared to 1% rise in the benchmark index till yesterday.