Shares of Punjab National Bank jumped almost 7 per cent in the index after it agreed to honour claims by other banks who issued credit to jeweller Nirav Modi and his uncle Mehul Choksi against guarantees given by PNB, ET reported.
On Monday, the stock had closed almost 7% lower on reports that the Enforcement Directorate filed a prosecution complaint against former director Anup Prakash Garg in a Rs5,000cr bank fraud case involving Sterling Biotech Ltd. This recovery will substantially improve the Bank's balance sheet, Bank of India Executive Director N Damodharan told reporters here. The bank aims to bring down its net non-performing assets ratio to below 6%, he is reported to have added.More news: Southampton legend Le Tissier: Pellegrino was too negative
"During December 2017, we have reported the Group accounts as Fraud to Reserie Bank of India amounting toRs.515.19 cr alleging diversion of funds and Money Laundering on the part of the Companies".
India's retail inflation eased to 4.44 percent in February from 5.1 percent in January, but remained above the 4 percent medium-term target of the Reserve Bank of India. The bank clarified in the exchange filing that Garg "was the chartered accountant director nominated by the government under Banking Acquisition and Transfer of Undertaking Act and held office from October 13, 2006 to October 12, 2009". Andhra Bank, which plunged sharply in the previous session, is trading almost 10% up now. Shares of Oriental Bank of India added 6.2%, Andhra Bank 6.1%, Union Bank of India 6%, Bank of Baroda 6%, Syndicate Bank 5.2%, Allahabad Bank 4.4%, Punjab National Bank 4.4%, Canara Bank 4.1%, Indian Bank 3.3%, IDBI Bank 2.8% and State Bank of India shares rose 2.3%. Punjab National Bank is up with a gain of 7.5%.More news: Federer backs Djokovic to improve after poor comeback
The Nifty PSU Bank index was trading 4.81 per cent up at 2,981 around 01:10 pm (IST) on Tuesday with all components in the green.
"PSU (public sector) banks have been oversold, having been battered down so badly, so some sort of bounce was due and the CPI (data) coming in at a soft level became a trigger for the rise as it could lead to some pressure on RBI to re-look the interest rates", said Deepak Jasani, head of retail research at HDFC Securities. Even private sector bank stocks are trading higher today, thanks to the improved sentiment.More news: Jeff Flake wants GOP primary challenge to Trump in 2020
Axis Bank, ICICI Bank and Federal Bank gained around 1.5 percent.