According to media reports, the government is considering extending the 'ratna' title to state-owned lenders like State Bank of India and Bank of Baroda
Mumbai: The Nifty PSU Bank index surged 4% on Wednesday as against a 0.24% decline in the benchmark share index. Shares of public sector banks rose 1-5% on the National Stock Exchange (NSE).
According to media reports, the government is considering extending the 'ratna' title to state-owned lenders like State Bank of India (SBI) and Bank of Baroda. As per government rules, a public sector enterprise can be awarded 'ratna' title to give them financial autonomy. Currently, there are four categories of 'PSU ratna' in India-- miniratna-II, miniratna-I, navratna and maharatna.
SBI shares gained 5% to ₹203.85, a level last seen on 20 March. From the beginning of the year, SBI lost 39% against a drop of 7% in the benchmark index, Nifty.
Bank of Baroda surged 4.6% and Punjab National Bank rose 3.2%. UCO Bank, Bank of Maharashtra, Central Bank of India, Indian Bank, Canara Bank, J&K Bank, and Indian Overseas Bank were up in the range of 1.15-2.7%.
Meanwhile, the Nifty Private Bank index fell about 0.5% with Kotak Mahindra Bank down 1% and Bandhan Bank declining 1.36%.