PSU banks gain on government capital infusion report

Union Bank of India, Bank of Baroda, Oriental Bank of Commerce, Bank of India, Allahabad Bank, Canara Bank, PNB, Andhra Bank and Syndicate Bank were up in the range of 4% to 6% on the NSE.

Shares of public sector undertaking (PSU) banks were in focus with Nifty PSU Bank index gaining nearly 2% on media report that six banks, including PNB, may get capital infusion of Rs 80 billion.

Union Bank of India, Bank of Baroda, Oriental Bank of Commerce, Bank of India, Allahabad Bank, Canara Bank, Punjab National Bank (PNB), Andhra Bank and Syndicate Bank were up in the range of 4% to 6% on the National Stock Exchange (NSE). State Bank of India (SBI) and IDBI Bank were up 1% each.

At 01:13 pm; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 1.8% as compared to 0.28% rise in the Nifty 50 index. Nifty Bank and Nifty Private Bank indices were up 0.5% each.

Around six public sector banks (PSBs), including the PNB that has been hit by the Nirav Modi scam, might get a capital infusion of about Rs 80 billion from the government, The Economic Times on Tuesday reported, while citing an unnamed senior finance ministry official. These banks are likely to fall short of regulatory capital requirements. CLICK HERE TO READ FULL REPORT

Meanwhile, another media report suggested that PNB said it would monetise non-core assets to raise Rs 86 billion and target net profit of over Rs 55 billion in second quarter of FY19.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
UNION BANK (I)	78.90	74.40	6.05
BANK OF BARODA	118.60	113.05	4.91
ORIENTAL BANK	70.45	67.45	4.45
BANK OF INDIA	80.70	77.50	4.13
CANARA BANK	231.35	222.35	4.05
ALLAHABAD BANK	41.25	39.65	4.04
PUNJAB NATL.BANK	76.70	73.85	3.86
ANDHRA BANK	30.65	29.55	3.72
SYNDICATE BANK	39.15	37.75	3.71
VIJAYA BANK	51.15	49.85	2.61
DENA BANK	14.35	14.00	2.50
INDIAN BANK	329.70	322.85	2.12
CORPORATION BANK	24.25	23.75	2.11
I O B	13.45	13.20	1.89
IDBI BANK	57.20	56.45	1.33
CENTRAL BANK	68.75	67.85	1.33
BANK OF MAHA	12.05	11.90	1.26
UCO BANK	18.00	17.80	1.12
ST BK OF INDIA	254.10	251.60	0.99