PSBs trade mixed after Government unveils bank recap plan

State Bank of India, Punjab National Bank, Indian Bank and Bank of Baroda were trading lower by 3% on NSE at 09:36 AM

Shares of frontline public sector banks (PSBs) were down up to 5% on the National Stock Exchange (NSE) in early morning trade on profit booking after the government unveiled recapitalisation (recap) plan.

The government has announced details of the Rs 2.1tn recapitalisation plan approved in October, 2017 for 20 public sector banks (PSB), with over Rs 881 billion to be infused in FY18 itself, of which Rs 800 billion is to be raised via “recap bonds”.

At 09:36 AM; State Bank of India (SBI) Punjab National Bank (PNB), Indian Bank and Bank of Baroda (BOB) were trading lower