Over Rs 1,000 crore traded in SBI, PNB shares as Jaitley details PSU recap plan; stocks crash 4-6%

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Updated: January 25, 2018 1:05:29 PM

Shares of State Bank of India and Punjab National Bank were trading heavily with their collective turnover crossing Rs 1,000 crore in the mid-morning trades on Thursday after Arun Jaitley detailed PSU bank recap plan yesterday.

Shares of India’s largest bank State Bank of India losing 4.92% to the day’s low of Rs 313.65 on NSE. (Image: Reuters)

Shares of State Bank of India and Punjab National Bank were trading heavily with their collective turnover crossing Rs 1,000 crore in the mid-morning trades on Thursday after Arun Jaitley detailed PSU bank recap plan yesterday. In a press conference held on Wednesday, the Finance Minister Arun Jaitley detailed about the Modi government’s mega plan of Rs 2.11 lakh crore to recapitalise the NPA-laden PSU banks. The Finance Secretary Rajiv Kumar laid down 6-point reforms for the PSBs and said their performance will be under the annual assessment.

As at 12:45 pm, about Rs 1,177 crore worth of shares of SBI and PNB were traded on National Stock Exchange. However, both the shares shed up to 6% in Thursday’s trade with State Bank of India losing 4.92% to the day’s low of Rs 313.65 while Punjab National Bank tripping 5.93% to the day’s low of Rs 183.1. Amid the heavy trading volumes, about 2.29 and 2.37 crore shares of SBI and PNB exchanged hands on NSE.

Out of the 21 PSBs, IDBI Bank emerged as the biggest beneficiary as the bank was allocated a whopping Rs 10,610 crore followed by Bank of India (Rs 9,232 crore), SBI (Rs 8,800 crore), UCO Bank (Rs 6,507 crore), Central Bank of India (Rs 5,158 crore) and PNB (Rs 5,473 crore)from the government. Following the development, shares of IDBI Bank rose as much as 7.12% to the day’s high of Rs 70 on NSE taking a 2-day rise of about 13% as the state-run lender has been allocated the maximum sum on Wednesday.

Meanwhile, Indian stock markets hovered in red ahead of F&O expiry and Q3 earnings of Maruti Suzuki after opening marginally higher with Sensex and Nifty starting at fresh highs in the morning trade on Thursday. BSE Sensex was trading 95.61 points or 0.26% at 36,066.03 while Nifty was trading 25.9 points or 0.23% lower at 11,060.1. During the day, Sensex lost as much as 144.16 points to hit a day’s low at 36,017.48. The Indian rupee strengthened gaining as much as 23 paise against the US dollar in the early morning trades on Thursday. The domestic currency had been appreciating since last two days following the record-run in Indian equities led by IMF economy forecast. The rupee surged 23 paise to 63.46 apiece US dollar at the interbank foreign exchange market on Thursday.

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