Individually, Corporation Bank surged 17 per cent, while Central Bank of India rallied 11 per cent on the National Stock Exchange (NSE). Syndicate Bank, Bank of India, Canara Bank, Indian Overseas Bank, Punjab National Bank (PNB) and Oriental Bank of Commerce were up between 5 per cent and 7 per cent.
At 10:25 am, the Nifty PSU Bank index, the largest gainer among sectoral indices, was up 4 per cent at 2,477 points. In comparison, the benchmark Nifty 50 index was up 0.70 per cent, while the Nifty Bank and Nifty Private Bank indices were up 1 per cent each.
Shares of State Bank of India (SBI) gained up 4 per cent to Rs 319 on the NSE. The counter has seen a huge trading volumes with a combined 24.9 million shares changed hands on the NSE and BSE so far.
While announcing September quarter results last month, on recoveries, SBI chief Rajnish Kumar said, “By November 15, the bank is expecting a final judgement on Essar Steel and some other cases and is expecting a recovery of Rs 17,000 crore, which is over and above the normal recovery for the coming quarter.”
Meanwhile, in a regulatory filing, SBI announced the approval for divestment up to 4 per cent in SBI Cards through an initial public offering (IPO).
The Executive Committee of the Central Board of Directors (ECCB) of the Bank at its meeting held on Thursday accorded final approval, for divestment of SBI stake in SBI Cards upto 4 per cent through IPO by way of offer for sale of upto 37.29 million equity shares subject to the regulatory approval.