PSU Banks buzz on back of Rs. 11,336 crore capital infusion

The stocks of five public sector banks; IOB, Corp Bank, PNB, Andhra Bank and Allahabad Bank are slated to receive a capital infusion of Rs. 11,336 crore via the Indradhanush Scheme of 2015.

The finance ministry approved the capital infusion which includes Rs. 2,019 crore for Andhra Bank; Rs. 1,790 crore for Allahabad Bank; Rs. 2,157 crore for Indian Overseas Bank (IOB), Rs. 2,555 for Corporation Bank and Rs. 2,816 crore for Punjab National Bank (PNB).

Mission Indradhanush had allocated a capital infusion of Rs. 70,000 crore into PSBs in a period of 4 years, this is the last tranche of this infusion. The infusion will help the banks tide over high NPAs and meet BASEL- III norms.

At 10:02 hours, the stock of IOB and Corp Bank was trading in green with IOB at Rs. 14.45 per share, up 7.12 per cent and Corp Bank was at Rs. 27.80, up 4.91 per cent, Andhra Bank was at Rs. 31.25, up 0.81 per cent, while those of Allahabad Bank, PNB were trailing in the red at Rs. 41.75 per share, down by 1.18 per cent, Punjab National Bank was at Rs. 78.35, down 0.44 per cent.

Meanwhile, the benchmark indices BSE Sensex was at 36,651.57, up 131.61 points or 0.36 per cent and Nifty50 was at 11,051.50, up 43.45 points or 0.39 per cent at around 10:10 hours on Wednesday.