Stocks of state-owned banks gained up to 5 per cent today as the government injected Rs 22,915 crore capital in 13 public sector lenders to revive loan growth that has hit a two-decade low.
Shares of Canara Bank surged 4.71 per cent, followed by Indian Overseas Bank (0.90 per cent), Syndicate Bank (0.83 per cent), Bank of India (0.81 per cent) and State Bank of India (0.48 per cent) on BSE.
In a bid to shore up cash-strapped public sector banks, the government today injected Rs 22,915 crore capital in 13 lenders including SBI and Indian Overseas Bank to revive loan growth.
This is the first tranche of capital infusion for the current fiscal and more funds would be provided in future depending on the performance of PSBs, a Finance Ministry statement said.
In all, Rs 70,000 crore in capital is to be invested over four years to contain risks in the banking industry.
