PSBs extend gains; Indian Bank, Bank of India up over 3%

Shares of public sector banks (PSBs) were trading higher for the second straight day in a row amid softening of the yield on the 10-year gilt, following the Reserve Bank of India (RBI’s) open market operation announcement on Friday.

Indian Bank surged 7% to Rs 344, extending its previous day’s 3.5% gain on the National Stock Exchange (NSE). Bank of India up 4%, while IDBI Bank, Andhra Bank, Union Bank of India, Bank of Baroda, Canara Bank, Syndicate Bank, Oriental Bank of Commerce and State Bank of India (SBI) were up 2% to 3% on the NSE.

At 12:17 pm; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 2.3% at 2,905 as compared to 0.15% rise in the Nifty 50 index. In past two trading sessions, the PSU bank index was up 4.4% against 1% rise in the benchmark index.