Bhushan Steel resolution effect: PSBs gain, Nifty PSU Bank index up 2%

SBI, Bank of India, PNB, Oriental Bank of Commerce, Canara Bank, Indian Bank and Bank of India were up 1% to 4% on the NSE.

Shares of public sector banks (PSBs) were trading higher by up to 4% on the National Stock Exchange (NSE) in early morning trade on Monday after Tata Group acquired controlling stake of 72.65% in the debt-ridden Bhushan Steel for around Rs 352 billion last week, which will help in cleansing the banking system as well as boost lenders profitability.

This is the second resolution from the first list of 12 major accounts identified by the Reserve Bank of India (RBI). The first one was Vedanta buying Electrosteel last month.

State Bank of India (SBI), Bank of India, Punjab National