Nifty PSU Bank index up 3%; Vijaya Bank, Oriental Bank up over 5%

SBI, Dena Bank, Indian Bank, Bank of Maharashtra, Bank of India, Canara Bank and Uco Bank were up over 3% on NSE.

Shares of public sector undertaking (PSU) banks have rallied by up to 9% during intra-day trade on the bourses in an otherwise subdued market.

State Bank of India (SBI), Vijaya Bank, Oriental Bank of Commerce, Dena Bank, Indian Bank, Bank of Maharashtra, Bank of India, Canara Bank and Uco Bank were up 3%-9% on the National Stock Exchange (NSE).

At 02:39 PM, the Nifty PSU Bank index was up 3% as compared to 0.17% rise in the Nifty 50 index and 0.49% gain in Nifty Bank index.

SBI was up nearly 4% to Rs 219 on the NSE in intra-day trade. The state-owned bank said it will examine the status and decide on long term fund raising in single/multiple tranches up to US$ 1,500 million through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during the financial year 2016-17.

A meeting of the executive committee of the central board of the bank is scheduled to be held on June 29, 2016 at Mumbai to consider the same, SBI said in a BSE filing.

Vijaya Bank has rallied 9% to Rs 39 after the bank on Friday got shareholders' approval to raise Rs 900 crore by issuing equity shares.

The approval came at the Bank's Annual General Meeting, the bank said, but did not provide any time-frame for raising the funds.