PSU Bank shares rally up to 16% on Rs 48,239 crore capital infusion plan

NEW DELHI: Shares of PSU banks rallied up to 16 per cent in Thursday's trade after the Finance Ministry announced a Rs 48,239-crore capital infusion plan for 12 public sector banks, in a bid to make the banks meet regulatory capital requirements.
Shares of Corporation Bank (up 16 per cent), Central Bank of India (up 5.88 per cent) , Punjab National Bank (up 3.09 per cent) , Bank of India (up 2.50 per cent) and Vijaya Bank (up 2.49 per cent) shot up to 16 per cent in morning trade.

At 9.27 am, the Nifty PSU Bank index was trading 1.02 per cent higher at 2,770.50 .


With this tranche, the government has now infused Rs 1,00,958 crore of the Rs 1.06-lakh crore bank capitalisation programme for this financial year. The biggest beneficiaries of the latest round of capital support are Corporation Bank(Rs 9,086 crore) and Allahabad Bank (Rs 6,896 crore).

Union Bank of India (up 2.44 per cent), Syndicate Bank (up 2.34 per cent), Canara Bank (up 1.69 per cent), Oriental Bank of Commerce (up 0.98 per cent) and State Bank of India (up 0.86 per cent) too were trading in the green.

Benchmark NSE Nifty50 index was up 13.50 points at 10,748.95 while the BSE Sensex was up 55.23 points at 35,811.49.

Among the 50 stocks in the Nifty index, 34 were trading in the green, while 16 were in the red.

Shares of YES Bank, SBI, Bank of Baroda, Ashok Leyland, ONGC, Vedanta , ICICI Bank, Tata Steel, SAIL, Tata Motors and JSW Steel were among the most traded shares on the NSE.