Nifty PSU Bank index rose over 1 percent led by gains in Central Bank of India, PNB, Bank of India, Union Bank of India, Syndicate Bank, Vijaya Bank as well as SBI after the government announced final recapitalisation tranche amount of Rs 48,239 crore for as many as 12 public sector banks.
The government had initiated a mega recapitalisation drive in October 2017 announcing infusion of Rs 2.11 lakh crore in banks by way of capital. Of this Rs 1.35 lakh crore was through recap bonds, Rs 18,000 crore via budgetary support and rest as to be raised via market operations.
The 12 banks are Allahabad Bank, Corporation Bank, Bank of India, Bank of Maharashtra, Punjab National Bank, Union Bank, Andhra Bank, Syndicate Bank, Central Bank, United Bank, UCO Bank and IOB.
As of December 2018, government infused Rs 51,533 crore via budgetary allocation and recap bonds.