Public sector banks gain on Rs 70,000-crore capital boost from govt

Bank of Baroda, PNB, Bank of India, Oriental Bank of Commerce, Central Bank of India, Allahabad Bank, Syndicate Bank, Union Bank of India, and Canara Bank were up 5% to 12% in intra-day trade

Shares of public sector banks (PSU) rallied by up to 11 per cent on the National Stock Exchange (NSE) in Monday's early morning trade after the government announced that it will infuse Rs 70,000 crore upfront into state-owned banks.

State Bank of India (SBI), Bank of Baroda, Punjab National Bank, Bank of India, Oriental Bank of Commerce, Central Bank of India, Allahabad Bank, Syndicate Bank, Union Bank of India, and Canara Bank were all up 5 per cent to 12 per cent on the NSE in intra-day trade.

Nifty PSU Bank index surged 6 per cent to 2,558 in