Public sector banks jump up to 10 per cent on capital infusion announcement

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Published: August 26, 2019 6:44:59 PM

Finance Minister Nirmala Sitharaman on Friday announced upfront capital infusion of Rs 70,000 crore into public sector banks, a move aimed at boosting lending and improving liquidity situation.

Among others, Canara Bank rose 3.39 per cent and Bank of Baroda 1.71 per cent.Among others, Canara Bank rose 3.39 per cent and Bank of Baroda 1.71 per cent.

Shares of public sector banks on Monday zoomed up to 10 per cent after the government announced upfront capital infusion of Rs 70,000 crore into them.

The stock of Central Bank of India zoomed 10.08 per cent, Allahabad Bank 8.33 per cent, Bank of Maharashtra 5.98 per cent, Bank of India climbed 3.96 per cent, Union Bank of India 3.62 per cent, State Bank of India rose 3.38 per cent and Punjab National Bank jumped 3.46 per cent on the BSE.

Among others, Canara Bank rose 3.39 per cent and Bank of Baroda 1.71 per cent.

Finance Minister Nirmala Sitharaman on Friday announced upfront capital infusion of Rs 70,000 crore into public sector banks, a move aimed at boosting lending and improving liquidity situation.

The move is expected to generate an additional lending and liquidity in the financial system to the tune of Rs 5 lakh crore, she said at a press conference.

Vijay Bhushan, President at ANMI on major announcements by finance minister said another significant announcement is the infusion of liquidity by providing an upfront Rs 70,000 crore to PSBs which will release liquidity of Rs 5 lakh crore for easing out pressure on the banking as well as the NBFC sector.

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