PSU banks surge on reports of holding company for state-run lenders
SBI rose 3.48%, IDBI Bank 5.35%, Bank of Baroda 2.9%, Canara Bank 5.59% and United Bank of India 2.96%
Mumbai: Shares of state-run banks jumped on Monday after Bloomberg reported, citing people it didn’t name, that the government is working on creating a holding company for public sector banks that will be a repository of its stakes in all state-run banks. Creation of such a holding company, if it happens, will help state-owned banks raise capital.
State Bank of India rose 3.48% to ₹ 2,630.45, IDBI Bank Ltd was up 5.35% to ₹ 98.45, Bank of Baroda up 2.9% to ₹ 867.9, Canara Bank up 5.59% to ₹ 438.35 and United Bank of India was trading up 2.96% at ₹ 48.70.
Among other banks, Dena Bank was trading up 4.81% at ₹ 86.05, Indian Overseas Bank up 7.71% to ₹ 83.15, Vijaya Bank up 4.1% to ₹ 52.10, Punjab National Bank up 2.97% to ₹ 972.15, Corporation Bank up 2.78% to ₹ 364.5, UCO Bank up 3.89% to ₹ 108.15, Union Bank of India up 4.61% to ₹ 215.55, Bank of Maharashtra up 4.06% to ₹ 48.70, Bank of India up 3.46% to ₹ 319.55, Central Bank of India up 9.72% to ₹ 82.40 and Andhra Bank up 5.09% at ₹ 100.1.
The government is “seriously" working on creating holding company that will be repository of government equity in all state-run banks, Bloomberg quoted an official as saying.
The BSE Bankex was trading at 17,419.18, up 2.74%, while the benchmark equity index, Sensex, was trading at 24,615.99, up 1.65%.
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