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Shares of public sector undertakings (PSU) banks are trading lower on profit booking after these stocks rallied by up to 20% in the past four trading sessions.
State Bank of India (SBI), Allahabad Bank, Canara Bank, Bank of Baroda, Union Bank of India, Andhra Bank, Punjab National Bank and Indian Overseas Bank are down 2%-5% each on the National Stock Exchange (NSE).
At 01:47 PM, the CNX PSU Bank index was down 2.5% or 91 points at 3,637 compared to a 0.49% rise in the CNX Nifty.
In the past four trading sessions till yesterday, the PSU bank index had rallied by nearly 13% after Union finance ministry unveiled a plan called Indradhanush to revamp the struggling public sector banks (PSBs). The benchmark index gained 1.4% during the same period.
The government finally appointed managing director and chief executive officer (MD & CEO) as well as non-executive chairmen for five PSBs, a year after key posts became vacant in some PSBs. Two of the newly appointed MDs and three chairmen are from the private sector.
Bank of Baroda, Canara Bank, Bank of India, IDBI Bank, Allahabad Bank, Punjab National Bank, Union Bank of India, Andhra Bank and SBI had surged 10%-21% between August 12 and August 18.
According to Anand James, Co-Head Technical Research Desk, Geojit BNP Paribas, the Indradhanush revival plans for state-owned banks add to the positive vibes that investors have had since the government announced capital infusion plans, but there is also a concern whether such measures are enough to fully address issues regarding non-performing assets (NPA).
State Bank of India (SBI), Allahabad Bank, Canara Bank, Bank of Baroda, Union Bank of India, Andhra Bank, Punjab National Bank and Indian Overseas Bank are down 2%-5% each on the National Stock Exchange (NSE).
At 01:47 PM, the CNX PSU Bank index was down 2.5% or 91 points at 3,637 compared to a 0.49% rise in the CNX Nifty.
In the past four trading sessions till yesterday, the PSU bank index had rallied by nearly 13% after Union finance ministry unveiled a plan called Indradhanush to revamp the struggling public sector banks (PSBs). The benchmark index gained 1.4% during the same period.
The government finally appointed managing director and chief executive officer (MD & CEO) as well as non-executive chairmen for five PSBs, a year after key posts became vacant in some PSBs. Two of the newly appointed MDs and three chairmen are from the private sector.
Bank of Baroda, Canara Bank, Bank of India, IDBI Bank, Allahabad Bank, Punjab National Bank, Union Bank of India, Andhra Bank and SBI had surged 10%-21% between August 12 and August 18.
According to Anand James, Co-Head Technical Research Desk, Geojit BNP Paribas, the Indradhanush revival plans for state-owned banks add to the positive vibes that investors have had since the government announced capital infusion plans, but there is also a concern whether such measures are enough to fully address issues regarding non-performing assets (NPA).
