Public sector banks' shares jump up to 10% on Rs 70,000 cr capital infusion announcement

New Delhi: Shares of public sector banks on Monday zoomed up to 10 percent after the government announced upfront capital infusion of Rs 70,000 crore into them. The stock of Central Bank of India zoomed 10.08 percent, Allahabad Bank 8.33 percent, Bank of Maharashtra 5.98 percent, Bank of India climbed 3.96 percent, Union Bank of India 3.62 percent, State Bank of India rose 3.38 percent and Punjab National Bank jumped 3.46 percent on the BSE. [caption id=“attachment_7023271” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] Among others, Canara Bank rose 3.39 percent and Bank of Baroda 1.71 percent. Finance Minister Nirmala Sitharaman on Friday announced upfront capital infusion of Rs 70,000 crore into public sector banks, a move aimed at boosting lending and improving liquidity situation. The move is expected to generate additional lending and liquidity in the financial system to the tune of Rs 5 lakh crore, she said at a press conference. Vijay Bhushan, President at ANMI on major announcements by finance minister said another significant announcement is the infusion of liquidity by providing an upfront Rs 70,000 crore to PSBs which will release liquidity of Rs 5 lakh crore for easing out the pressure on the banking as well as the NBFC sector.