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PSU bank stocks rise up to 11% amid reports of Rs 100 bn capital infusion

Among others, Andhra Bank gained 4.91 per cent, Dena Bank 3.58 per cent while Central Bank of India gained 3.10 per cent

Public Sector Banks  |  Psb  |  Central Bank Of India

Press Trust of India  |  New Delhi 

The finance ministry is likely to infuse capital in PNB, Corporation Bank, Central Bank of India among others

PSU bank stocks on Tuesday surged up to 11 per cent amid reports that the is likely to infuse about Rs 100 billion within a few days in some state-owned lenders to help them meet regulatory capital requirement.

Shares of zoomed 10.88 per cent, 7.23 per cent, 6.57 per cent, 6.38 per cent, 5.87 per cent, 5.71 per cent and 5.04 per cent on BSE.

Among others, gained 4.91 per cent, 3.58 per cent, 3.10 per cent, 2.27 per cent and 1.35 per cent.

"PSU banks outperformed due to prospects of govt's recapitalisation plan," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

The is likely to infuse about Rs 100 billion within a few days in some state-owned lenders including PNB, and Central Bank of India, to help them meet regulatory capital requirement, sources said.

The infusion would be part of remaining Rs 650 billion out of Rs 2.11 trillion capital infusion over two financial years.

The new round of infusion will be between Rs 80 billion and Rs 100 billion, sources said.

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First Published: Tue, July 17 2018. 18:12 IST