Shares in state-owned banks gain on hopes that the government would soon take a decision on restructuring debts of State Electricity Boards (SEBs).
A CNBC TV18 report had earlier said that a cabinet committee is likely to take a call on financial restructuring of SEBs on Thursday.
The report added states will take a burden of 50% of the debt and issue bonds against it, while the other 50% of debt will have to be restructured by the banks.
State-owned banks with relatively higher exposure to SEBs like Oriental Bank of Commerce, Canara Bank and Central Bank gain between 4% and 7%.Power financiers like Power Finance Corp and Rural Electrification Corp gain 4% each.