PSU bank stocks Corporation Bank, Allahabad Bank jump after coming out of RBI’s PCA framework

By: |
February 27, 2019 4:51 PM

Shares of state-run Corporation Bank, Allahabad Bank and Dhanlaxmi Bank jumped on Wednesday morning, after the PSU banks moved out out of RBI’s prompt corrective action (PCA) framework.

Shares, mutual funds, loan, investment, nifty, BSE, stock market, share market, Inflation, oil prices, NBFCs, fund, debt funds, mutual fund, investors RBI, Monetary Policy Committee, rbi policy rate,Private sector Dhanlaxmi Bank shares rose 10% to Rs 15.40 on BSE.

Shares of state-run Corporation Bank, Allahabad Bank and Dhanlaxmi Bank jumped on Wednesday morning, after the PSU banks moved out out of RBI’s prompt corrective action (PCA) framework. Corporation Bank shares zoomed more than 10% to hit intra-day high of Rs 32.15 on BSE, while Allahabad Bank shares climbed 8.20% to hit the day’s high of Rs 47.45 on BSE. Private sector Dhanlaxmi Bank shares rose 10% to Rs 15.40 on BSE.

Notably, the Reserve Bank of India (RBI) on Tuesday took Allahabad Bank, Corporation Bank and Dhanlaxmi Bank out of the prompt corrective action (PCA) framework, following an improvement in the two public-sector banks’ (PSBs) financial ratios after a fresh round of capital infusion in them.

Also read: Karachi stock exchange bleeds after IAF strikes down terror camps in Pakistan; here’s how much index tanked

Earlier last week, the ministry of finance had announced an infusion of Rs 9,086 crore in Corporation Bank and Rs 6,896 crore in Allahabad Bank. The two banks were the largest beneficiaries in the latest round of recapitalisation which involved fresh infusion into a total of 12 PSBs.

The RBI yesterday noted that the Board for Financial Supervision (BFS) reviewed the performance of banks under PCA. The latest capital infusion, has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with. “Accordingly, based on the principles adopted by the BFS in its earlier meeting dated January 31, 2019, it was decided in the meeting held on February 26, 2019 that Allahabad Bank and Corporation Bank be taken out of the PCA Framework subject to certain conditions and continuous monitoring,” RBI said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, 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.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Home First Finance IPO: 3rd IPO of 2021 opens Jan 21; check issue price, grey market premium, other details
2This US healthcare stock set to outperform in 2021; Credit Suisse raises target price
3Stocks in focus: Maruti Suzuki, Yes Bank, L&T Fin, Mindtree, PFC, ICICI Lombard, Alembic Pharma