Shares in Corporation Bank, Allahabad Bank and Dhanlaxmi Bank surged in early morning deals after the RBI took them out of the PCA framework and permitted them to resurrect normal lending activities and expansion of businesses. However, the relaxation is conditional on regular monitoring, the decision has been taken after the Board for Financial Supervision evaluated the performance of banks under Prompt corrective action.
Reactively, the Bank shares advanced. Shares of Allahabad Bank trade higher at Rs47.05 per share up 6.93percent while Corporation Bank rose 7percent at Rs31.40 per share and Dhanlaxmi Bank advanced 9.68percent at Rs15.30 per share. In comparison, the Sensex was at 36,314.76, higher by 341-points, while Nifty at 10924.90 up 89 points at 11:00 hrs Wednesday.