Shares of PSU banks gain on Rs 6000 crore infusion

MUMBAI: Shares of public sector banks gained momentum after the cabinet approved an infusion of Rs 6000 crore to bolster capital adequacy and thereby allow them to increase lending activity. The government has decided to ensure that the captial adequacy ratio of all public sector banks is at least 12%, instead of the RBI-prescribed 9%.

At 11 am: Shares of Bank of Baroda were up 3.18 per cent, Dena Bank moved 1.99 per cent higher, Andhra Bank gained 2.54 per cent, Vijay Bank advanced 2.61 per cent, Allahabad Bank rose 1.94 per cent and Union Bank of India rose 2.37 per cent.