PSU bank shares jump up to 5% as govt to infuse Rs 70,000 cr

Shares of public sector banks gained up to 5 per cent Friday after Finance Minister Nirmala Sitharaman announced fund infusion of Rs 70,000 crore into PSBs to strengthen them and enhance lending capacity.

Corporation Bank jumped 5 per cent, Bank of Baroda rose by 2.20 per cent, Canara Bank by 2.19 per cent, Bank of India by 2 per cent and Indian Overseas Bank by 1.89 per cent on BSE.

Andhra Bank gained 1.67 per cent, Punjab National Bank rose by 1.64 per cent, SBI by 1.48 per cent, Indian Bank by 1.40 per cent and Bank of Maharashtra by 1.21 per cent.

Unveiling the Budget for 2019-20, the finance minister said non-performing assets of PSBs have come down by Rs 1 lakh crore.

Banks have recovered Rs 4 lakh crore due to the Insolvency and Bankruptcy Code and other means effected in the past four years, she said.

The government has decided to infuse Rs 70,000 crore in state-owned banks, so that credit growth can be improved, the minister added.