PSU banks witness sharp intraday recovery
Public sector bank stocks got a boost—up to 2%—after news broke that the government might shake things up in the banking world.
There's talk of merging more state-run banks to keep up with India's growing need for loans, and the Nifty PSU Bank index quickly bounced back from earlier lows.
PNB, SBI shares lead the way
The government is also thinking about raising the 20% cap on foreign investment in these banks, hoping to attract more long-term money and new investors.
After this update, shares of Punjab National Bank led the way with a 1.7% jump, while UCO Bank, Indian Bank, and SBI weren't far behind.
For now, UCO Bank, Indian Overseas Bank, Punjab & Sind Bank, and Central Bank of India are still over 90% government-owned—a reminder that big changes could be coming soon.