Select PSU banks extend rally; Central Bank, Dena Bank surge 10%
Nifty PSU Bank rallied 6.5% as compared to less than 1% rise each in the Nifty Bank and Nifty 50 in past four trading sessions.
 "Select PSU banks extend rally; Central Bank, Dena Bank surge 10%")
Shares of select public sector undertaking (PSU) banks continue to move north for the fourth straight trading sessions after the Reserve Bank of India (RBI) came out with a scheme for resolution of bad loans of large projects wherein a portion of the debt will be converted into equity or other instruments.
Dena Bank (up 13% at Rs 37), Central Bank of India (up 12% at Rs 105), Bank of Maharashtra (9% at Rs 34), Vijaya Bank (7% at Rs 37), and United Bank of India (6% at Rs 22) were up more than 5% each on the National Stock Exchange (NSE).
Oriental Bank of Commerce, Indian Overseas Bank, Corporation Bank, Punjab National Bank and Uco Bank were up 2%-4% at 03:27 PM.
In past four trading sessions, the Nifty PSU Bank rallied 6.5% as compared to less than 1% rise each in the Nifty Bank index and Nifty 50 index.
RBI on Monday came out with a scheme for resolution of bad loans of large projects wherein a portion of the debt will be converted into equity or other instruments under supervision of IBA's Overseeing Committee. The Scheme for Sustainable Structuring of Stressed Assets (S4A) will cover those projects which have started commercial operations and have outstanding loan of over Rs 500 crore.
Meanwhile, the Union Cabinet on Wednesday gave a go-ahead to the merger of five associate lenders and Bharatiya Mahila Bank with State Bank of India (SBI).
Dena Bank (up 13% at Rs 37), Central Bank of India (up 12% at Rs 105), Bank of Maharashtra (9% at Rs 34), Vijaya Bank (7% at Rs 37), and United Bank of India (6% at Rs 22) were up more than 5% each on the National Stock Exchange (NSE).
Oriental Bank of Commerce, Indian Overseas Bank, Corporation Bank, Punjab National Bank and Uco Bank were up 2%-4% at 03:27 PM.
In past four trading sessions, the Nifty PSU Bank rallied 6.5% as compared to less than 1% rise each in the Nifty Bank index and Nifty 50 index.
RBI on Monday came out with a scheme for resolution of bad loans of large projects wherein a portion of the debt will be converted into equity or other instruments under supervision of IBA's Overseeing Committee. The Scheme for Sustainable Structuring of Stressed Assets (S4A) will cover those projects which have started commercial operations and have outstanding loan of over Rs 500 crore.
Meanwhile, the Union Cabinet on Wednesday gave a go-ahead to the merger of five associate lenders and Bharatiya Mahila Bank with State Bank of India (SBI).
Analysts say that the merger with associate banks has been one of the long-pending agendas and has come in earlier than what the Street was expecting. LINK.
| Bank | 13/06/2016 | 17/06/2016 | % Chg |
| State Bank of Mysore | 453.45 | 696.70 | 53.64 |
| State Bank of Travancore | 392.50 | 552.00 | 40.64 |
| State Bank of Bikaner & Jaipur | 500.30 | 697.65 | 39.45 |
| Dena Bank | 29.55 | 36.00 | 21.83 |
| United Bank of India | 18.15 | 21.80 | 20.11 |
| Central Bank of India | 87.95 | 105.45 | 19.90 |
| Vijaya Bank | 31.35 | 37.20 | 18.66 |
| Punjab & Sind Bank | 44.30 | 52.30 | 18.06 |
| Indian Bank | 105.35 | 124.30 | 17.99 |
| Punjab National Bank | 82.95 | 94.55 | 13.98 |
| Bank of Maharashtra | 28.90 | 32.85 | 13.67 |
| Corp Bank | 35.35 | 40.10 | 13.44 |
| Allahabad Bank | 52.05 | 58.15 | 11.72 |
| Oriental Bank of Commerce | 89.10 | 99.45 | 11.62 |
| Andhra Bank | 50.00 | 54.65 | 9.30 |
| Syndicate Bank | 66.00 | 71.90 | 8.94 |
| UCO Bank | 36.15 | 39.10 | 8.16 |
| IDBI Bank Ltd | 66.65 | 71.70 | 7.58 |
| Bank of India | 87.50 | 94.05 | 7.49 |
| Union Bank of India | 118.60 | 126.75 | 6.87 |
| State Bank of India | 202.20 | 214.40 | 6.03 |
| Jammu & Kashmir Bank | 64.60 | 68.20 | 5.57 |
| Canara Bank | 192.50 | 202.25 | 5.06 |
| Indian Overseas Bank | 25.80 | 26.85 | 4.07 |
| Bank of Baroda | 145.90 | 150.55 | 3.19 |
| Price on BSE in Rs | |||
| Latest price at 03:21 PM | |||