PSU banks trade mixed after govt unveils NARCL plan; SBI hits new high

The government has approved a guarantee of Rs 30,600 crore to be provided for the security receipts issued by the National Asset Reconstruction Company (NARCL) to buy bad loans of lenders.

Shares of public sector banks (PSBs) were trading mixed on the bourses on Friday after the government approved a guarantee of Rs 30,600 crore to be provided for the security receipts issued by the National Asset Reconstruction Company (NARCL) to buy bad loans of lenders. On Thursday, most of the PSBs had rallied between 5 per cent and 10 per cent in anticipation of the announcement.

“Finance Minister Nirmala Sitharaman on Thursday announced a formal government guarantee on the securities receipts that the planned ‘bad bank’ will issue to banks as it takes on non-performing assets from their books,”