PSBs in focus: PNB, Bank of Baroda up over 4% on RBI's Operation Twist 2.0

In effect, higher liquidity would pull the yields down. This, in turn, would mean higher treasury profits on the bond portfolios for banks.

Public sector banks (PSBs) were in focus on Friday, with Nifty PSU Bank index gaining more than 3 per cent on the National Stock Exchange (NSE), on expectation that the banks would benefit from lower yields on government bonds.

At 10:45 am, Nifty PSU Bank index was trading as the top gainer among key sectoral indices, and was up 3.2 per cent, as compared to a 0.64 per cent rise in the benchmark Nifty50 index. 

Among individual stocks, Punjab & Sind Bank, Bank of Baroda and Punjab National Bank (PNB) gained more than 4 per cent each, while Canara Bank, Union Bank