PSU bank stocks in demand

Stocks of thirteen state-run banks rose 0.15% to 2.16% at 15:21 IST on BSE on comments from finance minister Arun Jaitley that the government will support state-run banks to commercially deal with bad loans.

Punjab National Bank (up 1.05%), IDBI Bank (up 0.94%), Dena Bank (up 0.52%), Syndicate Bank (up 1.02%), Vijaya Bank (up 0.49%), Allahabad Bank (up 1.18%), State Bank of India (up 1.17%), Union Bank of India (up 2.16%), Bank of Baroda (up 2%), Bank of India (up 0.42%), Canara Bank (up 0.7%), Andhra Bank (up 1.77%) and Corporation Bank (up 0.15%) edged higher.

Meanwhile, the S&P BSE Sensex was down 65.58 points or 0.24% at 26,777.45

Jaitley was quoted as saying at a news conference after a quarterly performance review meeting with the heads of state-run banks that banks should be empowered and constitutionally protected to conduct commercially prudent settlement of bad loans. Jaitley also said that the Indian Banks' Association would meet later today, 6 June 2016, to discuss and suggest a mechanism to handle such settlements.

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