PSU banks slip from day's high; Union Bank of India, OBC among top losers

Indian Overseas Bank (IOB), Corporation Bank, Dena Bank, Andhra Bank and Vijaya Bank were trading higher in the range of 1% to 6% on the NSE.

Shares of select public sector banks (PSBs) rallied up to 14% in early morning trade on Wednesday, extending their previous day’s surge on the BSE, after the government has decided to infuse Rs 113 billion into five PSBs, including Punjab National Bank (PNB), to help them meet regulatory capital requirements.

Indian Overseas Bank (IOB), Corporation Bank, Dena Bank, Andhra Bank and Vijaya Bank gained 1% to 6% on the National Stock Exchange (NSE). IOB was trading 6% higher after ralliing 14% to Rs 15.30 in intra-day trade today.

However, Union Bank of India, Bank of Baroda, Oriental Bank of Commerce, Bank of India, Indian Bank and Canara Bank slipped over 1%, erasing their entire early morning gain.

At 9:39 am; Nifty PSU Bank index was trading 0.28% lower at 2,792 points, as compared to 0.33% rise in the Nifty 50 index. The PSU bank index hit high of 2,841, up 1.5% in intra-day trade, after surging 3.9% on Tuesday.

According to reports, the government is planning to infuse Rs 28.2 billion into PNB, Rs 25.5 billion into Corporation Bank, Rs 21.6 billion into Indian Overseas Bank, Rs 20.2 billion into Andhra Bank and Rs 18 billion into Allahabad Bank. CLICK HERE TO READ FULL REPORT