Shares of PSU banks rallied on Tuesday on reports that the Ministry of finance is expected to infuse Rs.40000-crore in state-owned banks in order to increase the lending capacity and make better the balance sheets of the bank. The announcement may reportedly happen during the 2019 Budget presentation on 5th July-2019.
Expectations of the RBI’s monetary policy committee (MPC) slashing the interest rate by 2bps for the third consecutive time also lifted the sentiment.
Reacting to the news, at 12.00 hours Nifty PSU Bank index was seen higher at near 2% led by gains in shares of OBC, Union Bank, Jammu&Kashmair Bank, SyndicateBank, AllahabadBank, and Bank of India, which were up in the range of 3 to 5.76% in range.
Also share of PNB, Andhra Bank, Bank of Maharashtra, CorporationBank, IndianBank, UCO Bank, United Bank of India and SBI have also risen more or less 1 percent gains.
Meantime, the BSE Sensex were trading lower by 156 points at 40111-level and the NSE Nifty at 12032-level, down by 56 points.
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