New Delhi: Bank stocks were in high demand on Tuesday, surging up to 7 per cent, ahead of the government's capital infusion plan for state-owned lenders which was announced after market hours.
Shares of Syndicate Bank zoomed 7.12 per cent; Andhra Bank - 6.95 per cent; Punjab National Bank - 5.50 per cent; IDBI Bank - 4.83 per cent and Allahabad Bank - 4.42 per cent on BSE.
Among others, Bank of India rose by 4.04 per cent; Bank of Baroda - 3.84 per cent; Central Bank of India - 3.80 per cent; SBI - 3.56 per cent and Indian Bank - 2.20 per cent.
"Banking sector led the market higher on expectations over FM's announcement on recapitalisation plans for PSU banks," said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.
After the stock markets closed, the government announced an aggressive Rs 2.11 lakh crore capital infusion for the NPA hit public sector banks over a period of two years.
Of the total, Rs 1.35 lakh crore will be through the recapitalisation bonds, while the remaining Rs 76,000 crore from the budgetary support, Financial Services Secretary Rajiv Kumar said. Non-performing assets of banks have increased from Rs 2.75 lakh crore in March 2015 to Rs 7.33 lakh crore as on June 2017.