Small PSU banks rally; Dena Bank, UCO Bank up over 9%

Vijaya Bank, Allahabad Bank, IDBI Bank, IOB, United Bank and Syndicate Bank were up 5% and 7%.

Shares of small-sized public sector undertaking (PSU) banks have rallied up to 15% on reports that the government is working on consolidation of banks.

Dena Bank and UCO Bank surged 15% and 12%, respectively, on the BSE. Vijaya Bank, Allahabad Bank, IDBI Bank, Indian Overseas Bank, United Bank of India and Syndicate Bank were up between 5% and 7%, against 0.21% rise in the S&P BSE Sensex at 02:41 pm.

The government is "actively working" towards consolidation of banks, said Finance Minister Arun Jaitley on Monday.CLICK HERE TO READ FULL REPORT

Meanwhile, the Reserve Bank of