PSBs in Thursday's intra-day session today surged in the range of 5-19% due to substantial buying in these stocks. And some of the six names from the space have outperformed benchmark indices today.
One of the prime reason behind the sharp surge is capital infusion plan of the government. Plus there is another push given as most of the banks are expected to come out of the Prompt corrective action by the RBI until the end of March quarter.
Corporation Bank gained the most, after making an intra-day high of Rs. 30.60 on the BSE. Infusion in the bank is pegged with the highest amount of Rs. 9,086 crore. United Bank of India also surged by as much as 15% to make an intra-day high of Rs. 11.50. Government will infuse Rs 2,839 crore in the bank.
UCO Bank, Indian Overseas Bank Allahabad Bank, Central Bank, Bank of Maharashtra and Andhra Bank also surged in session today between 9-11%. Into these banks government will infuse, Rs 3,806 crore, Rs 6,896 crore, Rs 2,560 crore, Rs 205 crore and Rs 3,256 crore, respectively.
The recapitalization of Rs. 48,239 crore has been approved by the government and is aimed at removing banks from the current PCA framework.