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.
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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.