Nifty PSU Bank up 4% in one week;Canara, Syndicate, Dena Bank up over 15%

Shares of public sector banks (PSBs) were in focus with the Nifty PSU Bank index rising 4% thus far in current week, to record its biggest weekly gain since November 2017.
At 11:05 am; Nifty PSU Bank index was trading 1.26% higher at 2,977, gaining 4% thus far in the current week.

Syndicate Bank, Allahabad Bank, Oriental Bank of Commerce, Dena Bank and Canara Bank were up more than 15% so far in the current week. IDBI Bank, Andhra Bank, Central Bank of India, Indian Bank, Bank of Baroda, Corporation Bank and Union Bank of India up in the range of 10% to 15%.
The index posted its sharpest weekly gain since November 5, 2017, when it had gained 4%, after extending its 30% surge in the last week of October when the government announced banks recapitalization plan.

Between February 14 and March 9, 2018, most of the PSBs have fallen in the range of 10% to 40% on reports of cheating/fraud cases in several government-run banks.

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PSU banks in focus as Cabinet approves alternative mechanism for merger

STOCK MARKET - Shares of public sector undertaking (PSU) banks are in focus, trading higher by up to 4% on BSE, after the Cabinet on Wednesday approved setting up of an alternative mechanism for merger of public sector banks.

Allahabad Bank, Syndicate Bank, Indian Overseas Bank, Bank of India, Dena Bank, Andhra Bank, Union Bank of India, Oriental Bank of Commerce and Punjab National Bank were up more than 3% each.

At 02:59 PM; Nifty PSU Bank index was up 2% as compared to 1% rise each in Nifty Private Bank and the benchmark Nifty50 index.

In past one month, the PSU Bank index had underperformed the market by falling 8%, against less than 2% decline in Nifty50 and Nifty Private Bank index till Tuesday. Central Bank of India, Oriental Bank of Commerce, Syndicate Bank and Union Bank of India were down more than 15% during the period.

According to Business Standard report, the merger could take into account asset quality, capital adequacy ratio, profits and locations of banks, sources said.

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PSBs in focus; Nifty PSU Bank index up 2%

Shares of public sector banks (PSBs) were in focus with the Nifty PSU Bank gaining over 2% on the National Stock Exchange (NSE).

Jammu & Kashmir Bank, Allahabad Bank, Bank of India, Andhra Bank and IDBI Bank were up more than 3%, while State Bank of India (SBI), Oriental Bank of Commerce, Punjab National Bank, Union Bank of India and Bank of Baroda were up 1%-3% on NSE.


At 02:41 pm; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 1.9% at 3,578 after hitting its high of 3,581 in noon deals. By comparison, Nifty 50, Nifty Bank and Nifty Private Sector Bank indices were up less than 1%.

Amid talks of consolidation gaining currency in the Indian banking space, public sector lender Dena Bank's Chairman and Managing Director (CMD) Ashwani Kumar has said the proposed move would bring about several benefits, the Business Standard report suggests.

Consolidation would also benefit banks in their capital requirements and help them better manage non-performing assets (NPAs), he added. CLICK HERE TO READ FULL REPORT.

Meanwhile, foreign portfolio investors (FPIs) and domestic mutual funds (MFs) have increased their stake in public sector banks (PSBs) in the April - June quarter (Q1FY18), on the expectation that there will be a resolution to the non-performing assets (NPAs) issue.
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