PSU bank stocks extend Thursday's rally

Shares of twenty PSU banks rose 0.87% to 4.65% at 12:10 IST on BSE, extending Thursday's rally on reports that the Finance Ministry has approved a draft cabinet note, which proposes to create a holding company structure for state-run banks.

Union Bank of India (up 4.65%), Punjab National Bank (up 2.95%), Allahabad Bank (up 2.75%), State Bank of India (SBI) (up 2.72%), Oriental Bank of Commerce (up 2.61%), Bank of Baroda (up 2.59%), Bank of India (up 2.32%), Canara Bank (up 2.28%), Syndicate Bank (up 2.22%), Central Bank of India (up 2.16%), Indian Overseas Bank (up 1.83%), IDBI Bank (up 1.8%), UCO Bank (up 1.74%), Andhra Bank (up 1.71%), Punjab & Sind Bank (up 1.55%), Bank of Maharahstra (up 1.48%), Indian Bank (up 1.47%), Dena Bank (up 1.38%), Vijaya Bank (up 1.09%), and Corporation Bank (up 0.87%) edged higher.

Meanwhile, the S&P BSE Sensex was up 94.29 points or 0.36% at 26,454.40.

According to reports, the Finance Ministry has approved a draft cabinet note, which proposes to create a holding company structure for state-run banks. The holding company will consolidate the entire ownership of PSU banks into one company. This holding company will go ahead and raise money in order to recapitalise various public sector banks, reports said. There will be nearly 21 PSU banks, which will be part of that holding company and the holding company would later go ahead and raise funds so that it can capitalise various public sector companies, reports added.

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