PSU banks extend gain; PNB, Corporation Bank up over 4%

At 11:01 am; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 1.7%, rallied 6.5% in past four trading sessions, as compared to 2% rise in Nifty 50

Shares of public sector undertaking (PSU) banks were quoting higher for the fourth straight trading session with Nifty Bank surging 6.5% as compared to 2% rise in the benchmark Nifty 50 index.

State Bank of India (SBI), Punjab National Bank (PNB), Bank of India, Bank of Baroda, Oriental Bank of Commerce, Canara Bank, Corporation Bank, Uco Bank, Dena Bank and Vijaya Bank were up 2% to 6% on the National Stock Exchange (NSE).
 

At 11:01 am; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 1.7% as compared 0.41% rise in the Nifty 50 index.

Finance Minister Piyush Goyal on Friday after market hours said a committee will come out with its recommendations on setting up an asset reconstruction or an asset management company for faster resolution of bad loans.

“A panel headed by Sunil Mehta, non-executive chairman, Punjab National Bank, would give recommendations in two weeks on forming asset reconstruction companies/asset management companies (ARCs/AMCs) to resolve the problem, Union Finance Minister Piyush Goyal told reporters after discussions with public sector bank heads in Mumbai,” the Business Standard reported. CLICK HERE TO READ FULL REPORT

PNB was up 5% to Rs 94.65 on the NSE in intra-day trade, extending its 9% surge in past three trading sessions, on back of heavy volumes. As many as a combined 20.87 million equity shares have changed hands on the counter in first two hours of trading on the NSE and BSE.

Enthused by the successful resolution of Bhushan Steel, Nirav Modi fraud-hit PNB is hopeful of Rs 80 billion recovery from bad loans in the first quarter of the current fiscal.

The bank, with its focus on recovery of dues from defaulters, has managed to surpass the total amount recovered in the last fiscal in the first two months of this financial year, a senior PNB official told PTI.

COMPANY	LATEST	1-WK BEFORE	GAIN(%)
ALLAHABAD BANK	46.95	39.65	18.41
CORPORATION BANK	31.65	27.90	13.44
UCO BANK	20.75	18.35	13.08
PUNJAB NATL.BANK	94.00	83.20	12.98
CANARA BANK	280.35	253.35	10.66
ORIENTAL BANK	84.45	76.55	10.32
ANDHRA BANK	37.50	34.05	10.13
UNION BANK (I)	96.15	87.75	9.57
CENTRAL BANK	81.10	74.05	9.52
INDIAN BANK	369.20	338.35	9.12
DENA BANK	17.40	16.00	8.75
BANK OF MAHA	14.06	12.97	8.40
UNITED BANK (I)	12.16	11.22	8.38
BANK OF INDIA	102.35	94.65	8.14
SYNDICATE BANK	51.20	47.85	7.00
J & K BANK	61.30	57.75	6.15
PUN. & SIND BANK	33.25	31.35	6.06
ST BK OF INDIA	276.65	263.10	5.15
I O B	16.25	15.60	4.17
BANK OF BARODA	134.65	131.90	2.08