PSU Bank index up 31% in 1 wk on strong SBI Q3 results, privatization hope

SBI, Indian Bank, Bank of Baroda, Canara Bank, Punjab National Bank and Bank of India were rallied between 25 per cent and 50 per cent in past one week.

Shares of public sector banks (PSBs) were on a roll on Friday with the Nifty PSU Bank index surging 8 per cent, hitting a fresh 52-week high on the National Stock Exchange (NSE) after sector giant State Bank of India (SBI) reported a solid set of numbers for the quarter ended December 2020 (Q3FY21). Besides, the government's proposal to privatize two PSU banks in the financial year 2021-22 (FY22) also fuelled rally in these stocks.

At 09:30 am, Nifty PSU Bank index, the top gainer among sector indices, was up 8.5 per cent, as compared to a 0.69 rise