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. 

Yes Bank turns ex-stock split in ratio of 1:5 - Money Maker Research

Shares of Yes Bank Ltd hit a high of Rs 383, up 2 percent on BSE today in early trade after the stock turned ex-stock split in the ratio of 1:5 effective from Thursday.

Yes Bank had fixed Sept-22 as the record date for the eligibility determinacy of shareholders, with regards to subdivision of each equity share with face value of Rs. 10.00 fully paid up into 5 equity shares of face value Rs 2.00 each fully paid up. The stock of Yes Bank was trading up by 0.57 percent at Rs 379.90 per share on BSE at 11.40 am from its opening of at Rs 375.9 per share. The stock touched its intraday high of Rs 378.7 and low of Rs 373.4 per share.

A combined 4.66 million shares have changed hands on NSE & BSE during the hours. On an average of about 1.7 million shares were traded in past two weeks before the stock split.