PSB shares up 19 percent on fund infusion plan

MUMBAI: Shares of PSBs jumped up to 19%, Thursday after the Finance Ministry announced infusion of Rs 48,239 crore in 12 such lenders in this fiscal, to help them maintain regulatory capital requirements and finance growth plans. Corporation Bank zoomed 19.02 per cent at close of trade, UCO Bank 8.75 per cent, United Bank 7.19 per cent, Indian Overseas Bank 6.78 per cent, Central Bank of India 5.50 per cent on BSE.

Shares of Allahabad Bank jumped 5.34 per cent, Andhra Bank 5.22 per cent, Bank of Maharashtra 3.96 per cent, Syndicate Bank 3.59 per cent, Punjab National Bank 2.95 per cent, Union Bank of India 2.80 per cent and Bank of India 1.83 per cent. “Market extended gains as investors sentiment has been boosted owing to recapitalisation of PSU banks,” said Vinod Nair, Head of Research, Geojit Financial Services. With this funding, the total amount of capital infusion would increase to Rs 1,00,958 crore of the planned recapitalisation of Rs 1.06 lakh crore for PSBs for the current fiscal, according to Financial Services Secretary Rajiv Kumar.

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