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PSU banks surge on reports of holding company for state-run lenders

LiveMint logoLiveMint 02-06-2014 Ravindra N. Sonavane

Mumbai: Shares of state-run banks jumped on Monday after Bloomberg reported, citing people it didn’t name, that the government is working on creating a holding company for public sector banks that will be a repository of its stakes in all state-run banks. Creation of such a holding company, if it happens, will help state-owned banks raise capital.

State Bank of India rose 3.48% to `2,630.45, IDBI Bank Ltd was up 5.35% to `98.45, Bank of Baroda up 2.9% to `867.9, Canara Bank up 5.59% to `438.35 and United Bank of India was trading up 2.96% at `48.70.

Among other banks, Dena Bank was trading up 4.81% at `86.05, Indian Overseas Bank up 7.71% to `83.15, Vijaya Bank up 4.1% to `52.10, Punjab National Bank up 2.97% to `972.15, Corporation Bank up 2.78% to `364.5, UCO Bank up 3.89% to `108.15, Union Bank of India up 4.61% to `215.55, Bank of Maharashtra up 4.06% to `48.70, Bank of India up 3.46% to `319.55, Central Bank of India up 9.72% to `82.40 and Andhra Bank up 5.09% at `100.1.

The government is “seriously” working on creating holding company that will be repository of government equity in all state-run banks, Bloomberg quoted an official as saying.

The BSE Bankex was trading at 17,419.18, up 2.74%, while the benchmark equity index, Sensex, was trading at 24,615.99, up 1.65%.

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