The government has announced motivated
plans for bank capitalization to enhance the economy, stimulate investments and
generation of jobs, together with a highway construction project. Stocks of PSU
banks picked momentum on Wednesday following govt’s plan to
recapitalize the lenders with a huge capital size of Rs 2.11 lakh crore.
SBI rallied 19.57% to Rs 304.30,
Union Bank of India up 20.37% to Rs. 158.10, PNB 29.94% to Rs. 179.45,
OBC up 15.44% to Rs. 137.20 and Bank of Baroda at 23.09% to Rs. 176.20.
FM Arun Jaitley on 24
October 2017, said that the cabinet has sanctioned Rs. 1.35 lakh cr for India’s
public banking system from recap bonds, of the total approved 2.11 lakh cr. The
Bonds are used as payment for the shares bought by the govt for those banks
which are below par in a bid to raise their capitals.
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