PSU bank stocks were up as the Union Budget has allocated Rs 10,000 crore towards recapitalisation of public sector banks in FY2017-18.
Union Bank of India jumped 4.34 per cent, Bank of Baroda rose 3.27 per cent, SBI went up 3.13 per cent and PNB gained 3.12 per cent on the BSE.
Among others, shares of Syndicate Bank gained 2.31 per cent and Bank of India rose 2.25 per cent.
The government will infuse Rs 10,000 crore in public sector banks in the next fiscal and more will be provided if required, Finance Minister Arun Jaitley said.
“As per the Indradhanush plan, the public sector banks will be provided with Rs 10,000 crore in the next fiscal.
Additional allocation would be made if required,” he said while presenting Budget 2017-18.
Under Indradhanush roadmap announced in 2015, the government will infuse Rs 70,000 crore in nationalised banks over four years while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirement in line with global risk norms, known as Basel-III.