Nifty PSU Bank index spikes up

Public sector bank stocks showed renewed vigor on Monday as government prepares to seek parliament's approval for recapitalisation of PSU banks.

The approval is for FY18 recap bonds for Rs 60,000 to Rs 70,000 crore. Government has already stated that the capital infusion through recap bonds will be according to the banks' performance record.

At 15:20 hours, Nifty PSU Bank was at 3,821.70, up by 86.75 points or 2.32 per cent. Prominent PSU bank stock including PNB was trading at Rs. 179.70, up by 4.72 per cent, Union Bank was at Rs. 154.70, up by 4.39 per cent, Canara Bank was at Rs. 365.95, up 2.97 per cent, Bank of Baroda was at Rs. 169.60, up 2.63  per cent. While India'a largest bank, State Bank Of India and an index heavyweight was trading at Rs. 318.70, up by 2.07 per cent on Monday.

Meanwhile, PSU banks have notified the exchanges that India Banks'Association (IBA), All India Bank Employees' Association (AIBEA) and All India Bank Officer's Association (AIBOA) have jointly called at strike on December 27, 2017, which will affect the functioning of their branches.

Nifty50 was trading at 10,388.90 points, higher by 55.65 points or 0.54 per cent, at 15:23 hours.