Small PSU banks rally; Dena Bank, UCO Bank up over 9%

Vijaya Bank, Allahabad Bank, IDBI Bank, IOB, United Bank and Syndicate Bank were up 5% and 7%.

Shares of small-sized public sector undertaking (PSU) banks have rallied up to 15% on reports that the government is working on consolidation of banks.

Dena Bank and UCO Bank surged 15% and 12%, respectively, on the BSE. Vijaya Bank, Allahabad Bank, IDBI Bank, Indian Overseas Bank, United Bank of India and Syndicate Bank were up between 5% and 7%, against 0.21% rise in the S&P BSE Sensex at 02:41 pm.

The government is "actively working" towards consolidation of banks, said Finance Minister Arun Jaitley on Monday.CLICK HERE TO READ FULL REPORT

Meanwhile, the Reserve Bank of India (RBI) on Tuesday said its internal advisory committee (IAC) had identified 12 accounts that covered about 25% of the banking system’s non-performing assets for immediate resolution under the Insolvency and Bankruptcy Code.

“Even the large stressed companies need a 30-80% reduction in interest burden to fully cover interest at current profitability.

Therefore, stress resolution will need additional provisioning and capital. ICICI Bank is the only corporate lender that appears comfortable on capital,” Credit Suisse said in a report.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
UCO BANK	37.15	33.45	11.06
DENA BANK	36.60	33.45	9.42
ALLAHABAD BANK	72.40	67.10	7.90
VIJAYA BANK	84.10	78.50	7.13
DHANLAXMI BANK	40.40	38.00	6.32
KARUR VYSYA BANK	142.10	134.00	6.04
IDBI BANK	60.50	57.15	5.86
I O B	26.80	25.50	5.10
UNITED BANK (I)	20.15	19.25	4.68
PUN. & SIND BANK	55.05	52.60	4.66
SYNDICATE BANK	81.05	77.50	4.58
BANK OF MAHA	31.00	29.75	4.20
ANDHRA BANK	60.60	58.25	4.03
CORPORATION BANK	52.50	50.70	3.55
CENTRAL BANK	102.00	99.15	2.87
UNION BANK (I)	155.15	150.95	2.78
INDIAN BANK	306.20	298.95	2.43
PUNJAB NATL.BANK	152.25	148.65	2.42
BANK OF BARODA	173.40	169.75	2.15
J & K BANK	87.55	85.75	2.10