Public sector banks in focus, CNX PSU Bank index up 3%

Bank of Baroda, Punjab National Bank, Canara Bank, Bank of India and Oriental Bank of Commerce are up 3-6% on the NSE.

Shares of public sector undertakings (PSU) banks have moved higher by up to 6% in noon deals on the National Stock Exchange (NSE).

Bank of Baroda, Punjab National Bank, Canara Bank, Bank of India and Oriental Bank of Commerce are up 4-6%, while State Bank of India, Union Bank of India, Syndicate Bank, Allahabad Bank, IDBI Bank, Andhra Bank and Indian Overseas Bank are trading higher between 1-3%.

The NSE state-owned bank index, CNX PSU Bank is up nearly 3%, as compared to 0.51% rise in benchmark CNX Nifty and 1.34% gain in Bank Nifty at 1430 hours.

Finance Minister P Chidambaram today reviewed the performance of PSU banks. He says credit growth remains high in realty and services sector but high bad loans remain biggest challenge for public sector banks.

The finance minister says the PSU banks are focusing on recovery of bad loans.

Among the individual banks, Bank of Baroda is up 6% at Rs 610, followed by Punjab National Bank (5% at Rs 592), Canara Bank (4% at Rs 227), Bank of India (3.5% at Rs 182) and Oriental Bank of Commerce (3% at Rs 184).