PSU Bank stocks rise as Jaitley’s announcement of Rs 2.11 lakh cr bank recapitalization plan

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. 

Today Stock Market Sensex Nifty Flat

The last day session of the market trading is slightly decline at the end of the Day trading. The BSE Sensex closed 42 points down at 25838 and the Nifty Closed 13 points down at 7899.

The banking and the Auto stocks are the main root of the Friday session they both are buying and the FMCH and IT stock are fell down 1 percent.

Reliance Communications, which was among the top Sensex gainers, added 5.46 per cent in trade. It has received Department of Telecom's approval for spectrum sharing in nine circles with Reliance Jio.

Shares of Sanghi Industries advanced 5.51 per cent, as Piramal Enterprises has invested Rs 256.5 crore via non-convertible debentures of the company.
Oil prices rose in Asian trade, setting crude futures on course for one of their biggest weekly gains this year, as sentiment has become more upbeat despite ongoing oversupply.

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