PSU banks in focus as Cabinet approves alternative mechanism for merger

Allahabad Bank, Syndicate Bank, Indian Overseas Bank and Bank of India were up more than 3%.

Shares of public sector undertaking (PSU) banks are in focus, trading higher by up to 4% on BSE, after the Cabinet on Wednesday approved setting up of an alternative mechanism for merger of public sector banks.

Allahabad Bank, Syndicate Bank, Indian Overseas Bank, Bank of India, Dena Bank, Andhra Bank, Union Bank of India, Oriental Bank of Commerce and Punjab National Bank were up more than 3% each.

At 02:59 PM; Nifty PSU Bank index was up 2% as compared to 1% rise each in Nifty Private Bank and the benchmark Nifty50 index.

In past one month, the PSU Bank index had underperformed the market by falling 8%, against less than 2% decline in Nifty50 and Nifty Private Bank index till Tuesday. Central Bank of India, Oriental Bank of Commerce, Syndicate Bank and Union Bank of India were down more than 15% during the period.

According to Business Standard report, the merger could take into account asset quality, capital adequacy ratio, profits and locations of banks, sources said. CLICK HERE TO READ FULL REPORT

BANK	LATEST	PREV CLOSE	GAIN(%)
ALLAHABAD BANK	67.00	64.20	4.4
I O B	23.30	22.40	4.0
UNION BANK (I)	133.70	129.25	3.4
INDIAN BANK	299.80	290.35	3.3
BANK OF INDIA	143.70	139.30	3.2
ORIENTAL BANK	123.35	119.60	3.1
DENA BANK	31.35	30.40	3.1
PUNJAB NATL.BANK	142.20	137.90	3.1
ANDHRA BANK	51.35	49.85	3.0
CANARA BANK	336.10	326.90	2.8
SYNDICATE BANK	64.60	62.85	2.8
BANK OF MAHA	27.25	26.55	2.6
CORPORATION BANK	45.35	44.40	2.1
PUN. & SIND BANK	48.45	47.45	2.1
UNITED BANK (I)	18.30	17.95	2.0
UCO BANK	30.75	30.20	1.8
ST BK OF INDIA	278.50	274.10	1.6
IDBI BANK	54.65	53.80	1.6
VIJAYA BANK	64.25	63.50	1.2