PSBs in focus; CNX PSU Bank index up 1.2%

Corporation Bank, Union Bank, Allahabad Bank, Syndicate Bank, IOB and Bank of India are up 3-4% on NSE.

Banking shares, mainly the public sector banks, are trading higher by up to 4% in noon trade on the bourses on reports that the Prime Minister Narendra Modi will hold discussions with chiefs of public sector banks on January 3 to work out an action plan for major reforms in the banking sector.

Corporation Bank, Union Bank of India, Allahabad Bank, Indian Overseas Bank, Bank of India and Syndicate Bank are up 3-4%, while State Bank of India (SBI), Oriental Bank of Commerce, IDBI Bank, Punjab National Bank, Bank of Baroda and Canara Bank up 1-3% on National Stock Exchange (NSE).

At 1213 hours, CNX PSU Bank index up 1.2% or 52 points at 4,224 as compared to 0.05% rise in the CNX Nifty and 0.25% gain in Bank Nifty.

The two-day retreat beginning January 2 will discuss issues like consolidation and restructuring of the public sector banks (PSBs) to improve efficiency, capital requirement, risk profiling and debt recovery, according to a PTI report.

Finance Minister Arun Jaitley, the Reserve Bank of India Governor Raghuram Rajan, top officials of the Finance Ministry and heads of PSBs will be attending the retreat which is being called as "Gyan Sangam", added report.