Banking shares extend gains for second straight day on media report of ‘bad bank’.

The government is likely to set up a “bad bank’’ to take over the non-performing assets, according to a media report, citing unidentified government sources.

Finance Minister Arun Jaitley is likely to make an announcement in the upcoming Budget on February 29, the report said.

Public sector banks lead the uptrend. State Bank of India and Punjab National Bank shares were up between 2 per cent and 3 per cent.

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