PSU banks gain as RBI lets banks spread bond losses in 4 quarters

PSU Banks gained up to 4.5% after The Reserve Bank of India on Monday allowed banks to spread provisions for bond losses in the third and fourth quarters of FY18 over the next four quarters.

The central bank said the provisioning for each of these quarters may be spread equally over up to four quarters, commencing with the quarter in which the loss was incurred.

Nifty PSU Bank index rose over 2% with all its constituents trading in green in early morning deals. Bank of India, Union Bank of India, Bank of Baroda and Syndicate Bank were up in the range of