Nifty PSU Bank index hits over four-month high

United Bank of India, Central Bank of India, Bank of Maharashtra and Indian Bank hits six-month high on NSE.

Shares of public sector undertaking (PSU) banks extended gains for the sixth straight trading session with the Nifty PSU Bank index quoting over four-month high on the National Stock Exchange (NSE).

Nifty PSU Bank index hit intra-day high of 2,686 on Tuesday, its highest level since January 8, 2016. In the past six trading sessions, since June 13, PSU bank index has rallied 8% after the Reserve Bank of India (RBI) came out with a scheme for resolution of bad loans of large projects wherein a portion of the debt will be converted into equity or other instruments. The Nifty 50 index gained 1.4%, while Nifty Bank index up 0.51% during the same period.

United Bank of India, Central Bank of India, Bank of Maharashtra, Indian Bank, Punjab & Sindh Bank, Vijaya Bank, State Bank of Travancore, State Bank of Mysore and State Bank of Bikaner & Jaipur were hit their respective six-month highs in past two trading sessions during intra-day trade on the NSE.

At 11:34 AM, Canara Bank, Punjab National Bank, Andhra Bank, Oriental Bank of Commerce, Syndicate Bank and Bank of India were up more than 1% each, against 0.18% decline in the benchmark index.

According to Economic Times reports, a change of leadership at the RBI could prompt the government to seek a release of large piles of cash with the central bank. It may then redeploy the funds in state-run banks, which need more equity infusion in the wake of unprecedented losses on account of rising bad debt. LINK

Bank	52-week low	13/06/2016	LTP	% chg*	%chg#
St Bk of Mysore	349.00	452.90	667.25	47.33	91.19
St Bk of Bikaner	451.05	499.05	664.85	33.22	47.40
Indian Bank	75.30	105.45	138.80	31.63	84.33
St Bk of Travancore	360.00	392.20	515.95	31.55	43.32
United Bank (I)	16.05	18.10	22.90	26.52	42.68
Dena Bank	25.60	29.40	36.90	25.51	44.14
Central Bank	47.90	87.85	107.75	22.65	124.95
PNB	69.25	83.00	98.60	18.80	42.38
Vijaya Bank	28.20	31.25	36.60	17.12	29.79
Allahabad Bank	39.40	52.05	60.70	16.62	54.06
Oriental Bank	75.15	89.25	103.80	16.30	38.12
Bank of Maha	26.05	28.90	33.45	15.74	28.41
Corporation Bank	31.05	35.20	40.10	13.92	29.15
Andhra Bank	41.80	49.95	56.00	12.11	33.97
Canara Bank	156.00	192.65	215.70	11.96	38.27
Bank of India	78.40	87.30	97.55	11.74	24.43
Syndicate Bank	49.40	65.95	73.15	10.92	48.08
Pun. & Sind Bank	31.65	44.35	49.05	10.60	54.98
UCO Bank	27.40	36.20	39.75	9.81	45.07
Union Bank (I)	104.00	118.55	129.30	9.07	24.33
IDBI Bank	47.25	66.45	71.75	7.98	51.85
IOB	20.85	25.80	27.70	7.36	32.85
St Bk of India	148.25	201.80	216.20	7.14	45.83
J & K Bank	56.20	64.65	68.80	6.42	22.42
Bank of Baroda	109.35	146.10	152.45	4.35	39.41
Nfity PSU Bank	1894.00	2478.75	2679.70	8.11	41.48
Nifty 50	6825.80	8110.60	8228.30	1.45	20.55
LTP : Last traded price on NSE in Rs at 11:51 AM
* Change over June 13, 2016
# Change over 52-week low