Do you own shares of these 7 PSBs? They may just have made you rich; shares surged up to 10%

Performance of these 7 PSBs can be attributed to a particular news. The buzz was that Union Finance Ministry is likely to go for capital infusion of about Rs 28,615 crore in these PSBs. 

Do you own shares of these 7 PSBs? They may just have made you rich; shares surged up to 10%
Representational Image: Photo: Pixabay
By ZeeBiz WebTeam
Updated: Thu, Dec 27, 2018
06:09 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Interest rates war in offing? Interest rates war in offing? "Winners will be larger banks," says S. Sridhar, Chairman, IMC BFSI Committee
Budget 2019 expectations: From recapitalization to mergers, here is what IMC BFSI Committee Chairman Sridhar wants for banking sector Budget 2019 expectations: From recapitalization to mergers, here is what IMC BFSI Committee Chairman Sridhar wants for banking sector
Lok Sabha Elections 2019: Modi govt retains power, focus shifts to NBFCs, banks - Liquidity, loans, recapitalization, deposits key factors Lok Sabha Elections 2019: Modi govt retains power, focus shifts to NBFCs, banks - Liquidity, loans, recapitalization, deposits key factors
Government's bank recap drive not enough for PSBs, Fitch reveals massive amount needed Government's bank recap drive not enough for PSBs, Fitch reveals massive amount needed
Stock Alert! 12 PSBs make investors richer by 5% to 19%; know why Stock Alert! 12 PSBs make investors richer by 5% to 19%; know why

While the banking index took a beating on Dalal Street today, there were some 7 state-owned banks that witnessed an opposite trend. So much so that they suitably enriched their investors. Bank Nifty ended at 26,878.55 down by 0.40%; whereas Nifty PSU Bank finished at 3,048.75 lower by 0.44% and that of Nifty Private Bank closed at 15,128, lower by 0.26%. However, this was not the case of PSBs like Central Bank of India, UCO Bank, United Bank of India, Syndicate Bank, Oriental Bank of Commerce, Bank of Maharashtra and Bank of India, as they made their investors rich by rising between 2.5% to over 10%. Performance of these 7 PSBs can be attributed to a particular news. The buzz was that Union Finance Ministry is likely to go for capital infusion of about Rs 28,615 crore in these PSBs. 

It was known that, Bank of India will receive the highest amount of Rs 10,086 crore, while United Bank of India is likely to get Rs 2159 crores. Central Bank of India will be recapitalised with Rs 1678 and Rs 3056 crore will be infused in UCO Bank.

OBC will get capital support of Rs 5500 crore, Bank of Maharashtra will get Rs 4498 crore and Syndicate bank will be recapitalised with Rs 1638 crore.

Following the news, Bank of Maharashtra gained as much as 10.15% today on Sensex with an intraday high of Rs 15.4 per piece. However, it However, the bank ended at Rs 14.87 above 6.37% on the index. 

Going ahead, it was Central Bank of India which surged by nearly 10% on Sensex with an intrady high of Rs 37.55 per piece, before finishing at Rs 36.40 above 6.59%. 

Also, United Bank of India and UCO Bank rose over 5% and 6% today on exchanges with an intraday high of Rs 20.85 per piece and Rs 11.72 per piece respectively. After market hours, UCO Bank share price stands at Rs 20.55 per piece higher by 3.53%, whereas United Bank of India at Rs 11.53 per piece up by 4.34%. 

On the other hand, Syndicate Bank, Bank of India and OBC saw between 2% to nearly 3% jump in their share price. However, Syndicate ended at Rs 38 per piece gradually up by 0.13%, while BOI at Rs 101.75 per piece up 0.94%. It was only OBC that finished slightly lower by 0.16% at Rs 94.85 per piece. 

It needs to be noted that, the government has already infused Rs 23,000 crore into the PSBs from the total amount for bank recapitalisation of Rs 1.06 lakh crore for FY2018-19. The remaining Rs 83,000 crore will be provided in the remaining three months of the financial year.