Shares of public sector banks (PSBs) jumped up to 19 per cent Thursday after the finance ministry announced infusion of Rs 48,239 crore in 12 such lenders in this fiscal to help them maintain regulatory capital requirements and finance growth plans.
Corporation Bank zoomed 19.02 per cent at close of trade, UCO Bank 8.75 per cent, United Bank 7.19 per cent, Indian Overseas Bank 6.78 per cent, Central Bank of India 5.50 per cent on BSE.
Shares of Allahabad Bank jumped 5.34 per cent, Andhra Bank 5.22 per cent, Bank of Maharashtra 3.96 per cent, Syndicate Bank 3.59 per cent, Punjab National Bank 2.95 per cent, Union Bank of India 2.80 per cent and Bank of India 1.83 per cent.
"Market extended gains as investors sentiment has been boosted owing to recapitalisation of PSU banks," said Vinod Nair, Head of Research, Geojit Financial Services.
With this funding, the total amount of capital infusion would increase to Rs 1,00,958 crore of the planned recapitalisation of Rs 1.06 lakh crore for PSBs for the current fiscal, according to Financial Services Secretary Rajiv Kumar.
Corporation Bank is the biggest beneficiary of this round of capital infusion with Rs 9,086 crore of funding, followed by Allahabad Bank with Rs 6,896 crore.
Further, Rs 4,638 crore and Rs 205 crore will be provided to Bank of India and Bank of Maharashtra, respectively.
Punjab National Bank will get Rs 5,908 crore, Union Bank of India Rs 4,112 crore, Andhra Bank Rs 3,256 crore and Syndicate Bank Rs 1,603 crore.
Under prompt corrective action (PCA), the government will pump in Rs 12,535 crore in four other banks -- Central Bank of India, United Bank, UCO Bank and Indian Overseas Bank.
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