PSBs in focus; UCO Bank, Indian Overseas, Union Bank surge over 5%

Motilal Oswal Financial Services believes that sustained and consistent performance on delivering healthy return ratios can result in further re-rating of the stocks.

Shares of public sector banks (PSBs) were in focus with the Nifty PSU Bank index gaining 2 per cent in Monday’s intra-day trade on value buying amid expectations of improved business/earnings outlook.

UCO Bank, Indian Overseas Bank and Union Bank of India rallied between 5 per cent to 7 per cent. Punjab and Sind Bank, Central Bank of India, Bank of Maharashtra, Bank of India, Punjab National Bank and Indian Bank were up in the range of 2 per cent to 5 per cent.

At 11:09 AM; the Nifty PSU Bank index, top gainer among sectoral indices, was