PSU banks extend rally, SBI nears record high; Nifty PSU Bank index up 3%

Since November 15, Nifty PSU Bank index has surged 14 per cent on hopes that the Supreme Court ruling in Essar Steel case should pave the way for a lumpy recovery for banks in Q3.

Shares of public sector banks (PSBs) continued their northward movement with the Nifty PSU Bank index surging over 3 per cent on  Thursday, on expectation of improvement in operational performance with receding fears of non-performing loans (NPL).

Oriental Bank of Commerce, Union Bank of India, Jammu & Kashmir Bank, Syndicate Bank, Indian Bank and Punjab National Bank (PNB) from the Nifty PSU Bank index rallied over 5 per cent today. State Bank of India (SBI), Bank of Baroda, Canara Bank, Bank of India and Allahabad Bank were up in the range of 2-3 per cent on the NSE.