Shares of PSU banks gain on government capital infusion plan

At 1010 hours, NSE CNX PSU Bank index was up nearly 3% compared to 0.34% fall in benchmark CNX Nifty.

Banking shares mainly public sector undertakings (PSU) are trading higher in otherwise subdued market on reports that the government has finalized Rs 14,000 crore capital infusion plan.

State Bank of India (SBI), Bank of Baroda, Canara Bank, Punjab National Bank, Bank of India and Union Bank of India are up 1-3% on the National Stock Exchange (NSE).

NSE CNX PSU Bank index was up nearly 3% compared to 0.34% fall in benchmark CNX Nifty at 1010 hours.

The Finance Ministry on Tuesday finalised the Rs 14,000-crore capital infusion plan for PSU banks to augment their capital base and promised another tranche in the fourth quarter of the current fiscal, the PTI report suggests.

Among the individual stocks, SBI and Bank of Baroda have gained 3% each at Rs 1,720 and Rs 579 respectively. Bank of Baroda, Canara Bank and IDBI are up 2% each on the NSE