PSU bank stocks spurt on capital infusion plan

Shares of public sector banks spurted this morning after Finance Minister P. Chidambaram announced capital infusion of Rs 14,000 crore in PSU banks.

While the details like pricing of the issue and individual allocation to banks etc. would be worked out in due course, the announcement perked up interest in PSU bank stocks with SBI, BoB and PNB emerging as the major gainers in the CNX PSU Bank index.

Shares of

SBI shot up by Rs 53.75 to Rs 1,729 followed by Bank of Baroda which gained Rs 19.85 to trade at Rs 583. PNB gained Rs 11.65 to trade at Rs 498.60.

Canara Bank was up by Rs 9 at Rs 239.45, BoI gained Rs 6.05 at Rs 182.90, Union Bank of India trading higher at Rs 121.75, a gain of Rs 4.10 and Oriental Bank of Commerce gained Rs 3.45 to trade at Rs 161.90.

IDBI Bank, Syndicate Bank, Allahabad Bank, IOB and Andhra Bank however made only marginal gains. The CNX PSU Bank index was up by about 69 points on the NSE.