Shares of PSU banks on Wednesday rose by as much as 4 per cent as the government announced infusion of Rs 10,000 crore in public sector banks in the next fiscal, during the Union Budget 2017.
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 BSE.
Among others, shares of Syndicate Bank gained 2.31 percent 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.