PSU bank stocks today depicted a mixed trend after the finance ministry approved infusion of Rs 11,336 crore in five state-owned lenders.
Shares of PNB plunged 4.76 per cent after earlier rising by 4 per cent on BSE.
On the other hand, Corporation Bank gained 2.64 per cent, while Andhra Bank shed early gains of over 5 per cent and fell by 1.13 per cent.
Indian Overseas Bank was up 3.04 per cent, while shares of Allahabad Bank dropped 2.96 per cent after earlier rising 4 per cent.
Most of these banks had surged up to 11 per cent yesterday.
The finance ministry has approved infusion of Rs 11,336 crore in five state-owned lenders including PNB, Corporation Bank and Andhra Bank to help them meet regulatory capital requirement, a senior government official said.
This is the first ever capital infusion in the current fiscal and the remaining amount of Rs 53,664 crore would be disbursed during the course of the year.
As per the plan, the sources said, Punjab National Bank (PNB) will get the highest amount of Rs 2,816 crore while Allahabad Bank will get Rs 1,790 crore.
Besides, Andhra Bank will receive Rs 2,019 crore, Indian Overseas Bank - Rs 2,157 crore and Corporation Bank - Rs 2,555 crore.
Capital infusion is required for these banks as they are saddled with non-performing assets (NPAs) or bad loans of about Rs 10 lakh crore.
Disclaimer: No Business Standard Journalist was involved in creation of this content
