PSU banks in focus

Andhra Bank, IDBI Bank, Oriental Bank, Syndicate Bank, Allahabad Bank and Union Bank are up 3-4% on NSE.

State-owned bank shares are in focus and trading higher by up to 5% in an otherwise weak market after Raghuram Rajan's comment on appointment process in state-owned banks.

Andhra Bank, IDBI Bank, Oriental Bank of Commerce, Syndicate Bank, Allahabad Bank and Union Bank of India are up 3-4%, Indian Overseas Bank, Bank of India, Punjab National Bank, Bank of Baroda and Canara Bank up 1-2% on the National Stock Exchange (NSE).

At 1350 hours, the NSE CNX PSU Bank index was up 1%  compared to 1% decline in benchmark CNX Nifty and 0.24% fall in Bank Nifty.

Reserve Bank of India (RBI) Governor Raghuram Rajan calls for change in appointment process in state banks.

Raghuram Rajan has said there is a need to change the management appointment process in public sector banks to make it more transparent, the Reuters report suggests.

The central bank is in talks with the government to improve governance in public sector banks, Rajan told a banking conference.