Eight PSU bank stocks jumped by 2.48% to 7.11% at 14:35 IST on BSE as the government's latest measures to boost domestic steel sector will augur well for these banks.
Meanwhile, the S&P BSE Sensex was down 2.90 points or 0.01% at 24,614.07.
Punjab National Bank (up 2.48%), Corporation Bank (up 3.65%), Allahabad Bank (up 4.51%), Bank of Baroda (up 5.59%), State Bank of India (SBI) (up 4.76%), Union Bank of India (up 5.02%), and Canara Bank (up 5.49%) edged higher.
Bank of India rose 7.11% after the bank announced that a meeting of the bank's board of directors will be held on 11 February 2016, to discuss the capital raising plans of the bank. The announcement was made by the bank on Saturday, 6 February 2016.
The government set floor price or Minimum Import Price (MIP) on import of a total of 173 steel products into the country in a bid to restrict cheap steel imports which has adversely affected the domestic steel industry. As per a notification issued by Directorate General of Foreign Trade on Friday, 5 February 2016, the government has imposed MIP ranging from $341 per tonne to $752 per tonne on various steel products. The MIP will be in place for a period of 6 months.
The government's latest efforts to boost domestic steel sector augur well for PSU banks as they have significant exposure to the steel sector.
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