MFs cash in as public sector banks rally

Sell shares of SBI, PNB and BoB worth Rs 1,600 crore in October amid rally following recap announcement

Fund managers turned net sellers in State Bank of India, Punjab National Bank and Bank of Baroda as the government's move to recapitalise public sector banks hoisted their stock prices by as much as 40 per cent.

Fund managers sold shares worth Rs 1,660 crore in October in these three banks in order to book profits upon the announcement of a Rs 2.11 lakh crore bank recapitalisation programme. 

Instead, they turned their attention to private banks. Axis Bank, HDFC Bank, Yes Bank and RBL Bank were among the most bought stocks. Fund managers pumped Rs 3,540 crore into these four