PSU bank recap: IDBI Bank stock tops trading volume, jumps 13% in 2 days; SBI, PNB shares fall up to 4%

By: |
Published: January 25, 2018 11:15:05 AM

Shares of IDBI Bank topped trading volumes rising as much as 13% in two days after Arun Jaitley detailed about the government's mega of Rs 2.11 lakh crore to recapitalise PSU banks while the stocks of SBI and PNB shed up to 4%.

Out of the total PSU banks IDBI Bank emerged as the biggest beneficiary today as the bank was allocated a whopping Rs 10,610 crore. (Image: Reuters)

Shares of public sector banks were in focus on Thursday after 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. At a press conference held on Wednesday, the Finance Secretary Rajiv Kumar laid down 6-point reforms for the PSBs and said their performance will be under the annual assessment. Of the 21 PSBs, IDBI will be getting the highest capital of Rs 10,610 crore from the government. Out of the total PSU banks IDBI Bank emerged as the biggest beneficiary today 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) and Central Bank (Rs 5,158 crore).

Following the development, shares of IDBI Bank rose as much as 7.12% to 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. The stock of IDBI Bank emerged as the volume topper, as at 10:55 am, 2,05 crore shares exchanged hands on NSE. Shares of India’s largest bank State Bank of India shed over 3% to the day’s low of Rs 318.65 after opening slightly up at Rs 332.75 while shares of Punjab National Bank slipped as much as 4.2% to the day’s low of Rs 186.45 after starting up 1.2% at Rs 197. The benchmark Nifty PSU Bank index fell as much as 3.53% to 3,825.5 paring Wednesday’s rise.

Earlier yesterday, ahead of the presser, shares of prominent banks such as IDBI Bank, Punjab National Bank, State Bank of India, Bank of Baroda surged up to 6%. The Nifty PSU Bank index shot up 3.49% to conclude at 3,965.6 led by a rise in heavyweight shares India’s largest lender State bank of India, PNB and Bank of Baroda on Wednesday. The stock of SBI rose as much as 3.88% to finish at Rs 330.45 while the stock of IDBI Bank emerged as the biggest gainer out of the Nifty PSU Bank index components.

Allocation to other PSU banks

  1. Canara Bank Rs 4,865 crore
  2. Union Bank: Rs 4,524 crore
  3. Syndicate Bank: Rs 2,839 crore
  4. Andhra Bank: Rs 1,890 crore
  5. Punjab & Sind Bank: Rs 785 crore
  6. IOB Bank: Rs 4,694 crore
  7. OBC Bank: Rs 3,571 crore
  8. Dena Bank: Rs 3,045 crore
  9. Bank of Maharashtra: Rs 3,173 crore
  10. United Bank: Rs 2,634 crore
  11. Corporation Bank: Rs 2,187 crore

21 public sector banks account for more than two-thirds of banking assets. These banks also account for a record 9.5 lakh crore of bad loans or non-performing assets. The government earlier this month sought parliamentary nod for additional Rs 80,000 crore bonds for the PSBs which are sitting on a pile of Rs 9.5 lakh crore bad loans and approved a proposal for infusion of Rs 7,577 crore in 6 weak PSBs.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Riding high on recap hopes, Nifty PSU Bank Index gains
2Relief to bond markets: Recap bonds to be non-SLR; pricing remains unclear
3Tata Consultancy Services second after Reliance Industries to cross Rs 6L cr in m-cap