PSBs gain; SBI, PNB, Canara Bank, Bank of Baroda, Bank of India up 3%
At 11:49 AM; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 3% at 3,854, bouncing back 7.4% from its intra-day low of 3,587 on the NSE.
 "funds, recapitalisation of PSBs, recapitalisation plan")
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recapitalisation of PSBs
Shares of public sector banks (PSBs) were in focus with the Nifty PSU bank index rallying more than 7% from its early morning lows on National Stock Exchange (NSE).
At 11:49 AM; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 3% at 3,854 as compared to 0.81% rise in the benchmark Nifty 50 index. Nifty PSU Bank index has rallied 7.4% from its early morning low of 3,587. Nifty Private Bank and Nifty Bank index were up 1% each.
State Bank of India (SBI), Punjab National Bank (PNB), Union Bank of India, Bank of India, Syndicate Bank and Canara Bank up in the range of 3% to 5%, while Bank of Baroda, Oriental Bank of Commerce, Indian Bank, Allahabad Bank and Andhra Bank up 2% each.
The government should bring down its stake in PSBs to 33% in the next three years as it plans to recapitalise banks to strengthen NPA-hit lenders, industry body CII said.
In October, the government had unveiled an unprecedented Rs 2.11 lakh crore two-year road map for strengthening NPA-hit public sector banks, which includes re-capitalisation bonds, budgetary support, and equity dilution.
"...Over the next 2-3 years, the Government could consider bringing down its stake in most PSBs to 33%. It could retain a larger share in the SBI in order to meet priority needs. The off-loading of stake may be in the form of preference shares instead of equity shares to maintain the majority voting rights with the Government with nil transference to the investors,” the industry body said in a statement, the PTI report suggested. CLICK HERE TO READ FULL REPORT
At 11:49 AM; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 3% at 3,854 as compared to 0.81% rise in the benchmark Nifty 50 index. Nifty PSU Bank index has rallied 7.4% from its early morning low of 3,587. Nifty Private Bank and Nifty Bank index were up 1% each.
State Bank of India (SBI), Punjab National Bank (PNB), Union Bank of India, Bank of India, Syndicate Bank and Canara Bank up in the range of 3% to 5%, while Bank of Baroda, Oriental Bank of Commerce, Indian Bank, Allahabad Bank and Andhra Bank up 2% each.
The government should bring down its stake in PSBs to 33% in the next three years as it plans to recapitalise banks to strengthen NPA-hit lenders, industry body CII said.
In October, the government had unveiled an unprecedented Rs 2.11 lakh crore two-year road map for strengthening NPA-hit public sector banks, which includes re-capitalisation bonds, budgetary support, and equity dilution.
"...Over the next 2-3 years, the Government could consider bringing down its stake in most PSBs to 33%. It could retain a larger share in the SBI in order to meet priority needs. The off-loading of stake may be in the form of preference shares instead of equity shares to maintain the majority voting rights with the Government with nil transference to the investors,” the industry body said in a statement, the PTI report suggested. CLICK HERE TO READ FULL REPORT