PSU banks end 5% higher on Rs 10K cr infusion announcement

Shares of PSU banks today rose by as much as 5.7 per cent after the government announced infusion of Rs 10,000 crore in public sector lenders in the next fiscal.
Union Bank of India soared 5.64 per cent, Bank of Baroda jumped 4.88 per cent, SBI gained 3.96 per cent and PNB went up by 3.24 per cent on BSE.
Shares of Bank of India gained 2.80 per cent, Allahabad Bank (2.78 per cent) and Syndicate Bank (1.79 per cent).
The BSE bank index ended the day with a gain of 2.76 per cent at 22,927.39.
The government will infuse Rs 10,000 crore in public sector banks in the next fiscal and more will be provided if required, Finance Minister Arun Jaitley said.

"As per the Indradhanush plan, the public sector banks will be provided with Rs 10,000 crore in the next fiscal. Additional allocation would be made if required," he said while presenting Budget 2017-18.
Under Indradhanush roadmap announced in 2015, the government will infuse Rs 70,000 crore in nationalised banks over four years while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirement in line with global risk norms, known as Basel-III.