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Budget 2017 impact: PSU banks end 5% higher on Rs 10,000 crore infusion announcement
Shares of PSU banks today rose by as much as 5.7 percent after the government announced infusion of Rs 10,000 crore in public sector lenders in the next fiscal.
New Delhi: Shares of PSU banks today rose by as much as 5.7 percent after the government announced infusion of Rs 10,000 crore in public sector lenders in the next fiscal.
Union Bank of India soared 5.64 percent, Bank of Baroda jumped 4.88 percent, SBI gained 3.96 percent and PNB went up by 3.24 percent on BSE.
Shares of Bank of India gained 2.80 percent, Allahabad Bank (2.78 percent) and Syndicate Bank (1.79 percent).
The BSE bank index ended the day with a gain of 2.76 percent at 22,927.39.
The government will infuse Rs 10,000 crore in public sector banks in the next fiscal and more will be provided if required, Finance Minister Arun Jaitley said.
"As per the Indradhanush plan, the public sector banks will be provided with Rs 10,000 crore in the next fiscal. Additional allocation would be made if required," he said while presenting Budget 2017-18.
Under Indradhanush roadmap announced in 2015, the government will infuse Rs 70,000 crore in nationalised banks over four years while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirement in line with global risk norms, known as Basel-III.