PSBs in focus; Nifty PSU Bank index up 2%

J&K Bank, Allahabad Bank, Bank of India, Andhra Bank and IDBI Bank were up more than 3% on NSE.

Shares of public sector banks (PSBs) were in focus with the Nifty PSU Bank gaining over 2% on the National Stock Exchange (NSE).

Jammu & Kashmir Bank, Allahabad Bank, Bank of India, Andhra Bank and IDBI Bank were up more than 3%, while State Bank of India (SBI), Oriental Bank of Commerce, Punjab National Bank, Union Bank of India and Bank of Baroda were up 1%-3% on NSE.

At 02:41 pm; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 1.9% at 3,578 after hitting its high of 3,581 in noon deals. By comparison, Nifty 50, Nifty Bank and Nifty Private Sector Bank indices were up less than 1%.

Amid talks of consolidation gaining currency in the Indian banking space, public sector lender Dena Bank's Chairman and Managing Director (CMD) Ashwani Kumar has said the proposed move would bring about several benefits, the Business Standard report suggests.

Consolidation would also benefit banks in their capital requirements and help them better manage non-performing assets (NPAs), he added. CLICK HERE TO READ FULL REPORT.

Meanwhile, foreign portfolio investors (FPIs) and domestic mutual funds (MFs) have increased their stake in public sector banks (PSBs) in the April - June quarter (Q1FY18), on the expectation that there will be a resolution to the non-performing assets (NPAs) issue. CLICK HERE TO READ FULL REPORT.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
J & K BANK	90.25	83.50	8.1
ALLAHABAD BANK	75.45	72.35	4.3
BANK OF INDIA	160.40	154.90	3.6
ANDHRA BANK	58.60	56.75	3.3
IDBI BANK	61.00	59.15	3.1
ORIENTAL BANK	153.90	149.75	2.8
UNION BANK (I)	158.15	154.80	2.2
PUNJAB NATL.BANK	161.35	158.25	2.0
BANK OF MAHA	28.90	28.35	1.9
BANK OF BARODA	164.60	161.75	1.8
SYNDICATE BANK	77.75	76.50	1.6
ST BK OF INDIA	295.30	290.65	1.6
PUN. & SIND BANK	55.75	55.00	1.4
CORPORATION BANK	51.90	51.25	1.3
UCO BANK	34.25	33.90	1.0
UNITED BANK (I)	19.80	19.60	1.0
I O B	25.05	24.80	1.0