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PSU banks gain after 7-day slide

Oriental Bank, Andhra Bank, Syndicate Bank, Allahabad Bank, IDBI Bank, BOII and Union Bank are up 2-4% on the NSE.

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SI Reporter Mumbai
Last Updated : Jul 14 2014 | 11:40 AM IST
Banking shares mainly public sector undertaking (PSUs) are trading higher by up to 4% in otherwise subdued market, partially rebounding from a sharp seven-day decline on the National Stock Exchange (NSE).

Oriental Bank of Commerce, Andhra Bank, Syndicate Bank, Allahabad Bank, IDBI Bank, Bank of India and Union Bank of India are up 2-4%, while State Bank of India, Punjab National Bank, Indian Overseas Bank and Canara Bank are gain up to 2%.

At 1125 hours, the NSE CNX PSU Bank was up nearly 1% at 3,435 levels compared to a marginal 0.06% decline in CNX Nifty.

In past seven trading sessions, CNX PSU Bank index had dipped 12% compared to 3.4% fall in benchmark index till yesterday. Most of the frontline PSU banks have seen market price erosion of between 10-20% during the period.

According to PTI reports, Finance ministry on Saturday said it is examining various issues pertaining to mergers of public sector banks and that there will be some forward movement in the current year itself.

Meanwhile, according to shareholding pattern for the quarter ended June 2014 filed by these banks with the stock exchanges, shows that the overseas investors have increased their exposures in PSU banks.

Foreign institutional investors (FIIs) increased their stake in large lenders such as State Bank of India and Bank of Baroda by over one percentage points each.

They have also bought stakes in many mid- and small-sized government-owned banks such as IDBI Bank, Indian Overseas Bank, Allahabad Bank, Canara Bank, Dena Bank and Syndicate Bank during the recently concluded quarter.
 
 
 

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First Published: Jul 14 2014 | 11:39 AM IST

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