Nifty PSU Bank index surges over 5%; Canara Bank, Bank of Maharashtra stocks gain

The PSU banking stocks were trading higher by 5% in the afternoon session as the rally was led by Maharashtra Bank, J&K Bank and Canara Bank.

Jul 08, 2020 12:07 IST India Infoline News Service

psu bank nifty
The Nifty PSU Bank is trading with a strong gain in an otherwise volatile market. The PSU banking stocks were trading higher by 5% in the afternoon session as the rally was led by Maharashtra Bank, J&K Bank and Canara Bank.

All the PSU Bank stocks were in the green, with Maharashtra Bank among top gainer on the index, up by 9%.

Indian Bank, Bank of Baroda, Canara Bank and Bank of Maharashtra jumped over 6%, while, State Bank of India (SBI), Punjab National Bank (PNB), Bank of India, Indian Overseas Bank and Union Bank of India were trading higher over 3.5% each on the banking index.

Country’s largest lender State Bank of India (SBI) has announced the reduction in its MCLR by 5-10 bps in the shorter tenors i.e. up to 3 months, with effect from July 10, 2020, to boost credit off-take and revive demand.

Pune-headquartered Bank of Maharashtra (BoM) has reduced one-year MCLR to 7.50% from 7.70%, while Canara Bank has cut its one-year MCLR to 7.55% from 7.65% earlier.

The Centre is likely to tell the Indian Banks’ Association (IBA) to set up its proposed “bad bank” with financial support from banks, instead of asking the government to become a promoter, according to a Business Standard report.

Meanwhile, PM Modi will address a global audience, to focus on India's trade and foreign investments at India Global Week with the three-day event will take place from July 9 to 11.

RBI has extended the term of chairman and Managing Director (CMD) J&K Bank RK Chibber by three more months with effect from July 10 or till the appointment of MD & CEO of the Bank, the bank said in a regulatory filing.

Related Story