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Govt plan to infuse capital plonks shares of state-run banks 16% higher on Sensex

PW Bureau

Of the Rs 1.06-lakh crore bank capitalisation programme for this fiscal, Finance Ministry has now pumped in Rs 1,00,958 crore  New Delhi: A day after the government made public its plan to infuse Rs 48,239 crore in 12 state-run banks this financial year, shares of state banks rose up to 16 percent in Thursday’s trade. Of the Rs 1.06-lakh crore bank capitalisation programme for this fiscal, Finance Ministry has now pumped in Rs 1,00,958 crore. Further, the Nifty PSU Bank index was trading 1.02 percent higher at 2,770.50 at 9.27 am. As a result of the Finance Ministry’s bid to make the banks meet regulatory capital requirements, shares of Corporation Bank increased 16 percent, Central Bank of India shot up 5.88 percent, Punjab National Bank grew 3.09 percent, Bank of India, up 2.50 percent and Vijaya Bank, rising 2.49 percent, surged to 16 percent in morning trade.

Corporation Bank, Allahabad Bank benefit most

With an injection of Rs 9,086 crore on the anvil for Corporation Bank and Rs 6,896 crore for Allahabad Bank, the two banks are the biggest beneficiaries of the latest round of capital support. The other banks that benefitted included Union Bank of India (up 2.44 percent), Syndicate Bank (up 2.34 percent), Canara Bank (up 1.69 percent), Oriental Bank of Commerce (up 0.98 percent) and State Bank of India (up 0.86 percent). Benchmark NSE Nifty50 index grew 13.50 points at 10,748.95 and the BSE Sensex was up 55.23 points at 35,811.49. Moreover, 34 of the 50 stocks in the Nifty index were trading in the green, with 16 in the red. Shares of Bank of Baroda, Yes Bank, ICICI Bank, SBI, Vedanta, Tata Steel, SAIL, Tata Motors, JSW Steel Ashok Leyland and ONGC were among the most traded shares on the NSE.