Shares of seventeen PSU banks gained 2.17% to 11.14% at 11:09 IST on BSE after the government announced capital allocation of Rs 20088 crore to a total of 13 PSU banks and also announced the structure of Bank Board Bureau.
Bank of Baroda (up 11.14%), Bank of India (up 5.32%), Canara Bank (up 5.92%), Union Bank of India (up 3.44%), Punjab National Bank (up 3.37%), Allahabad Bank (up 2.53%), State Bank of India (SBI) (up 2.98%), Oriental Bank of Commerce (up 2.69%), Bank of Maharashtra (up 3.1%), Syndicate Bank (up 2.25%), Indian Overseas Bank (up 2.58%), IDBI Bank (up 3.78%), Andhra Bank (up 2.38%), Dena Bank (up 2.49%), Vijaya Bank (up 2.7%), Corporation Bank (up 4.19%) and UCO Bank (up 2.17%) edged higher.
Meanwhile, the S&P BSE Sensex was down 279.27 points or 1% at 27,788.04.
The government after market hours on Friday, 14 August 2015, announced the appointment of MD and CEOs of five public sector banks (PSU banks) and Non-executive Chairman of five PSU banks. The government also announced capital allocation of Rs 20088 crore to a total of 13 PSU banks as part of Tranche 1 and Tranche 2 of recapitalization announced recently. The government also announced the structure of Bank Board Bureau (BBB) which will replace the Appointments Board for appointment of Whole-Time Directors and Non-Executive Chairman of PSU banks. The government also announced a new framework of Key Performance Indicators (Kpis) to be measured for evaluating the performance of PSU banks.
As part of Tranche 1 and Tranche 2 of recapitalization of PSU banks, State Bank of India will get capital infusion of Rs 5531 crore from the government, Bank of India will get Rs 2455 crore, IDBI Bank Rs 2229 crore, Bank of Baroda Rs 1786 crore and Punjab National Bank will get Rs 1732 crore. Among other PSU banks, Canara Bank will get capital infusion of Rs 947 crore, Indian Overseas Bank Rs 2009 crore, Union Bank of India Rs 1080 crore, Corporation Bank Rs 857 crore, Andhra Bank Rs 378 crore, Bank of Maharashtra Rs 394 crore, Allahabad Bank Rs 283 crore and Dena Bank Rs 407 crore.
Meanwhile, P S Jayakumar was appointed as MD & CEO of Bank of Baroda while Ravi Venkatesan was appointed as Non-Executive Chairman of the bank. M O Rego was appointed as MD & CEO of Bank of India while G Padmananbhan was appointed as Non-Executive Chairman of the bank. Rakesh Sharma was appointed as MD & CEO of Canara Bank while T N Manoharan was appointed as Non-Executive Chairman of the bank. Kishore Kharat Piraji was appointed as MD & CEO of IDBI Bank. Usha Ananthasubramanian was appointed as MD & CEO of Punjab National Bank. G Narayanan was appointed as Non-Executive Chairman of Vijaya Bank. T C V Subramainian was appointed as Non-Executive Chairman of Indian Bank.
The government further said that it is considering offering ESOPs for top management of PSU banks.
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