Shares of public sector lenders Corporation Bank, Punjab National Bank and Union Bank gained in intraday trade on Thursday morning, after the government announced Rs 48,000 crore capital infusion plan.
Punjab National Bank shares are trading 3 per cent higher at Rs 76, while Corporation Bank shares gained nearly 20 per cent to hit the day’s high at Rs 29.85. The PSU Bank index is trading nearly 1 per cent higher, buoyed by the gains in shares of Central Bank of India, PNB and Union Bank.
The government on Wednesday approved Rs 48,239 crore capital infusion into 12 public sector banks (PSBS) to help them maintain regulatory capital requirements and finance growth plans. It takes the total infusion into government banks to nearly Rs 1 lakh crore so far this fiscal, financial services secretary Rajeev Kumar said.
“Govt approves ₹ 48239 cr recap to 12 PSBs (₹ 1 lakh cr in FY) to equip 2 better-performing PSBs to be above reg PCA triggers, ensure PSBs brought out remain above PCA triggers, avoid PCA for PSBs in breach, & min reg capital for all PCA PSBs,” DFS Secretary Rajeev Kumar said in a tweet.
The stock markets- Sensex and Nifty opened marginally higher tracking positive global cues. Sensex is up about 50 points to 35,807.47, while the Nifty is trading above the 10,750-mark.