PSU banks slip as Budget proposal falls short of expectations

Shares of public sector banks fell by up to 2 per cent today after the finance minister proposed a lower-than-expected Rs 25,000 crore allocation for recapitalisation of PSBs.
Canara Bank declined by 1.77 per cent, Punjab National Bank 1.66 per cent, Allahabad Bank 1.59 per cent, Andhra Bank 1.49 per cent, Bank of India 1.07 per cent and Bank of Baroda 0.49 per cent on BSE.
The government will unveil a road map for consolidation of public sector banks (PSBs) which are expected to get an infusion of Rs 25,000 crore next fiscal, Finance Minister Arun Jaitley said today.
"The allocation of Rs 25,000 crore for bank recapitalisation is slightly disappointing," said Krishna Kumar Karwa, Managing Director, Emkay Global Financial Services Ltd.

"PSU banks' recapitalisation of Rs 25,000 crore is below estimates," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd.