Shares of public sector undertaking (PSU) banks are in focus, trading higher by up to 4% on BSE, after the Cabinet on Wednesday approved setting up of an alternative mechanism for merger of public sector banks.
Allahabad Bank, Syndicate Bank, Indian Overseas Bank, Bank of India, Dena Bank, Andhra Bank, Union Bank of India, Oriental Bank of Commerce and Punjab National Bank were up more than 3% each.
At 02:59 PM; Nifty PSU Bank index was up 2% as compared to 1% rise each in Nifty Private Bank and the benchmark Nifty50 index.
In past one month, the PSU Bank index had underperformed the market by falling 8%, against less than 2% decline in Nifty50 and Nifty Private Bank index till Tuesday. Central Bank of India, Oriental Bank of Commerce, Syndicate Bank and Union Bank of India were down more than 15% during the period.
According to Business Standard report, the merger could take into account asset quality, capital adequacy ratio, profits and locations of banks, sources said. CLICK HERE TO READ FULL REPORT