Public sector banks zoom up to 19% on fund infusion plan

Public sector banks zoom up to 19% on fund infusion plan
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NEW DELHI: Shares of public sector banks (PSBs) jumped up to 19 per cent on Thursday after the India’s 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 18.82 per cent, United Bank 14.88 per cent, UCO Bank 13.70 per cent, Bank of Maharashtra 10.84 per cent, Allahabad Bank by 10 per cent, Central Bank of India 10 per cent and Indian Overseas Bank 9.84 per cent on BSE.
Andhra Bank jumped 8.76 per cent, Punjab National Bank 7.94 per cent, Syndicate Bank 6 per cent, Bank of India 5.13 per cent and Union Bank of India gained 4.96 per cent.
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.
—PTI