Corporation Bank, Dhanlaxmi, Allahabad Bank gain over 5% on PCA exit

Shares of Corporation Bank, Dhanlaxmi Bank and Allahabad Bank rallied up to 10 per cent on the National Stock Exchange (NSE) in early morning trade on exit from the prompt corrective action (PCA) framework.

The Reserve Bank of India (RBI) on Tuesday removed these three banks from PCA framework allowing them to lend freely in line with the government’s objective to empower lenders so that they support economic growth.

Following the news, Corporation Bank rallied 10 per cent to Rs 32.40, Dhanlaxmi Bank, too, surged 10 per cent to Rs 15.30 and Allahabad Bank gained 6 per cent