PSU bank stocks rise up to 11% amid reports of Rs 100 bn capital infusion

The finance ministry is likely to infuse capital in PNB, Corporation Bank, Central Bank of India among others

PSU bank stocks on Tuesday surged up to 11 per cent amid reports that the finance ministry is likely to infuse about Rs 100 billion 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 100 billion 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 650 billion out of Rs 2.11 trillion capital infusion over two financial years.

The new round of infusion will be between Rs 80 billion and Rs 100 billion, sources said.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel