Markets

PSU bank stocks surge up to 11% on capital infusion reports

PTI New Delhi | Updated on July 17, 2018 Published on July 17, 2018

PSU bank stocks today surged up to 11 per cent amid reports that the finance ministry is likely to infuse about Rs 10,000 crore within a few days in some state-owned lenders to help them meet regulatory capital requirement.

Shares of Corporation Bank zoomed 10.88 per cent, Allahabad Bank 7.23 per cent, Punjab National Bank 6.57 per cent, Bank of Baroda 6.38 per cent, Bank of India 5.87 per cent, Canara Bank 5.71 per cent and Indian Bank 5.04 per cent on BSE.

Among others, Andhra Bank gained 4.91 per cent, Dena Bank 3.58 per cent, Central Bank of India 3.10 per cent, Bank of Maharashtra 2.27 per cent and Indian Overseas Bank 1.35 per cent.

“PSU banks outperformed due to prospects of govt’s recapitalisation plan,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

The finance ministry is likely to infuse about Rs 10,000 crore within a few days in some state-owned lenders including PNB, Corporation Bank and Central Bank of India, to help them meet regulatory capital requirement, sources said.

The infusion would be part of remaining Rs 65,000 crore out of Rs 2.11 lakh crore capital infusion over two financial years.

The new round of infusion will be between Rs 8,000 crore and Rs 10,000 crore, sources said.

Published on July 17, 2018
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