PSU banks extend gain; PNB, Corporation Bank up over 4%

People stand in front of the logo of Punjab National Bank outside a branch of the bank in New Delhi | Photo: Reuters
Shares of public sector undertaking (PSU) banks were quoting higher for the fourth straight trading session with Nifty Bank surging 6.5% as compared to 2% rise in the benchmark Nifty 50 index.

State Bank of India (SBI), Punjab National Bank (PNB), Bank of India, Bank of Baroda, Oriental Bank of Commerce, Canara Bank, Corporation Bank, Uco Bank, Dena Bank and Vijaya Bank were up 2% to 6% on the National Stock Exchange (NSE).

At 11:01 am; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 1.7% as compared 0.41% rise in the Nifty 50 index.

Finance Minister Piyush Goyal on Friday after market hours said a committee will come out with its recommendations on setting up an asset reconstruction or an asset management company for faster resolution of bad loans.

“A panel headed by Sunil Mehta, non-executive chairman, Punjab National Bank, would give recommendations in two weeks on forming asset reconstruction companies/asset management companies (ARCs/AMCs) to resolve the problem, Union Finance Minister Piyush Goyal told reporters after discussions with public sector bank heads in Mumbai,” the Business Standard reported. CLICK HERE TO READ FULL REPORT

PNB was up 5% to Rs 94.65 on the NSE in intra-day trade, extending its 9% surge in past three trading sessions, on back of heavy volumes. As many as a combined 20.87 million equity shares have changed hands on the counter in first two hours of trading on the NSE and BSE.

Enthused by the successful resolution of Bhushan Steel, Nirav Modi fraud-hit PNB is hopeful of Rs 80 billion recovery from bad loans in the first quarter of the current fiscal.

The bank, with its focus on recovery of dues from defaulters, has managed to surpass the total amount recovered in the last fiscal in the first two months of this financial year, a senior PNB official told PTI.

ALLAHABAD BANK 46.95 39.65 18.41
CORPORATION BANK 31.65 27.90 13.44
UCO BANK 20.75 18.35 13.08
PUNJAB NATL.BANK 94.00 83.20 12.98
CANARA BANK 280.35 253.35 10.66
ORIENTAL BANK 84.45 76.55 10.32
ANDHRA BANK 37.50 34.05 10.13
UNION BANK (I) 96.15 87.75 9.57
CENTRAL BANK 81.10 74.05 9.52
INDIAN BANK 369.20 338.35 9.12
DENA BANK 17.40 16.00 8.75
BANK OF MAHA 14.06 12.97 8.40
UNITED BANK (I) 12.16 11.22 8.38
BANK OF INDIA 102.35 94.65 8.14
SYNDICATE BANK 51.20 47.85 7.00
J & K BANK 61.30 57.75 6.15
PUN. & SIND BANK 33.25 31.35 6.06
ST BK OF INDIA 276.65 263.10 5.15
I O B 16.25 15.60 4.17
BANK OF BARODA 134.65 131.90 2.08

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