Shares of 25 public sector banks rose by 0.73% to 21.26% on BSE after some state-run bank announced encouraging Q2 September 2013 results today, 31 October 2013.
Bank of India (up 21.26%), Oriental Bank of Commerce (up 18.01%), Allahabad Bank (up 13.34%), Indian Bank (up 13.33%), Canara Bank (up 10.82%), Bank of Baroda (up 10.76%), Punjab National Bank (up 8.93%), Syndicate Bank (up 8.63%), UCO Bank (up 8.56%), Andhra Bank (up 8.26%), Indian Overseas Bank (up 7.74%), Union Bank of India (up 7.39%), Dena Bank (up 6.75%), Jammu & Kashmir Bank (up 6.47%), Vijaya Bank (up 6.18%), Corporation Bank (up 5.44%), Punjab & Sind Bank (up 5.2%), United Bank of India (up 4.66%), State Bank of India (SBI) (up 4.33%), Central Bank of India (up 3.23%), Bank of Maharashtra (up 2.85%), IDBI Bank (up 2.81%), State Bank of Travancore (up 2.78%), State Bank of Bikaner and Jaipur (up 1.34%) and State Bank of Mysore (up 0.73%), edged higher.
The S&P BSE Sensex rose 130.55 points, or 0.62% at 21,164.52.
Bank of India's net profit surged 105.98% to Rs 621.77 crore on 16.18% growth in total income to Rs 10339.55 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced during trading hours today, 31 October 2013.
Allahabad Bank's net profit rose 17.76% to Rs 275.81 crore on 15.72% growth in total income to Rs 5303.06 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced during trading hours today, 31 October 2013.
Fresh buying interest in shares of public sector banks (PSU banks) was also triggered by the Government of India's (GoI) recent approval for recapitalisation of certain PSU banks.
Last week, GoI approved infusion of a total of Rs 14000 crore in 20 PSU banks during financial year ending March 2014 through preferential allotment of equity shares. The largest capital infusion will be SBI at Rs 2000 crore, followed by Rs 1800 crore each in Central Bank of India and IDBI Bank, Rs 1200 crore in Indian Overseas Bank and Rs 1000 crore in Bank of India. GoI will infuse Rs 550 crore in Bank of Baroda and Rs 500 crore in Punjab National Bank.
SBI said its central board has approved raising upto Rs 2000 crore through preferential allotment of equity shares in favour of GoI.
Central Bank of India said it board has approved raising upto Rs 1800 crore by issuing equity shares to GoI on preferential basis. The board has fixed 5 November 2013 as the relevant date for the purpose of determining the issue price.
Union Bank of India's board has approved raising upto Rs 1997 crore through preferential allotment of shares/qualified institutional placements/rights issue.
Bank of Maharashtra said its board has decided to raise upto Rs 800 crore through preferential allotment of equity shares to GoI.
Punjab National Bank said that its chairman and managing director has approved issuing equity shares worth upto Rs 500 crore on preferential basis to GoI, subject to necessary approvals.
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