Nifty PSU Bank index surges 7%; SBI nears record high

Analysts expect most of the PSU banks to return to profitability during the current financial year 2019-20 (FY20), backed by improvement in the balance sheet

Shares of public sector banks were on a roll with Nifty PSU Bank index surging 7 per cent intra-day on the National Stock Exchange (NSE) amid expectations that the ruling National Democratic Alliance (NDA) may retain power at the Centre.

Indian Bank, Bank of Baroda, Bank of India (BOI), Canara Bank, Allahabad Bank and Syndicate Bank were up more than 7 per cent each on the NSE.

The shares of PSU banking giant, State Bank of India (SBI) hit a 52-week high of Rs 343, up 7.5 per cent. The stock was trading close to its record high