Central Bank of India, Punjab National Bank, Union Bank of India, Bank of India, Syndicate Bank, Canara Bank, Oriental Bank of Commerce and State Bank of India (SBI) were up in the range of 1 to 6 per cent on the NSE.
At 09:20 am; Nifty PSU Bank index, the largest gainer among sectoral indices, was up nearly 1 per cent at 2,768 points, as compared to a marginal 0.01 per cent decline in the benchmark Nifty 50 index at 10,734 points. Nifty Bank and Nifty Private Bank index were up 0.20 per cent each.
Financial Services Secretary Rajiv Kumar said the capital allocation had been done to equip better-performing PSBs to stay above the PCA triggers and ensure the minimum regulatory capital for all PCA banks, among other objectives. The recapitalisation will be in the form of bonds. With the latest round, the government has so far pumped Rs 1.89 trillion into PSBs since it announced the recapitalisation plan in October 2017. CLICK HERE TO READ FULL REPORT