Nifty PSU Bank index surges 2%; Canara Bank, Bank of Baroda gain over 3%

Operational performance is expected to remain positive across lenders, given steadier yields. Thus, robust recovery in earnings is expected in PSU banks, ICICI Securities said

Shares of public sector undertaking (PSU) banks were in focus on Monday with the Nifty PSU Bank index surging over 2 per cent on the National Stock Exchange (NSE) in the intra-day trade. The rally comes amid expectations of strong earnings recovery in state-owned lenders.

Canara Bank, Indian Bank, Bank of Baroda, and Bank of Maharashtra advanced in the range of 3 per cent to 4 per cent, while State Bank of India (SBI), Punjab National Bank, Union Bank of India, and Bank of India gainied between 1 per cent and 2 per cent.

At 11:23 AM, the