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Shares of public sector banks (PSBs) rose on September 11, lifting the Nifty PSU Bank index into positive territory in afternoon trade
Shares Of PSU Banks
Shares of public sector banks (PSBs) rose on September 11, lifting the Nifty PSU Bank index into positive territory in afternoon trade. The rally came amid renewed reports of possible consolidation among state-run lenders, which boosted investor sentiment.
The Nifty PSU Bank index climbed nearly 1 per cent to 7,089, marking its second straight session of gains.
According to an Economic Times report on September 10, the government is expected to revisit its consolidation roadmap for PSBs to create larger and more globally competitive banks. The matter is likely to be taken up at the upcoming PSB Manthan, which begins tomorrow.
The last major restructuring in 2019–2020 had reduced the number of state-run lenders from 27 to 12. A senior official told ET that while there is a clear need for Indian banks to scale up globally, any fresh round of mergers will depend on synergies and consultations with the lenders themselves. The government’s aim would be to form at least three to four very large banks, the report added.
The two-day summit is also expected to feature discussions between PSBs and infrastructure financing institutions such as the National Bank for Financing Infrastructure and Development (NaBFID) and the India Infrastructure Finance Company (IIFCL).
On the index, Punjab National Bank (PNB) and Canara Bank were the top gainers, rising nearly 2 per cent each. Shares of UCO Bank, Punjab & Sind Bank (PSB), Bank of Maharashtra, and Bank of India gained more than 1 per cent each. Union Bank of India, Central Bank of India, and State Bank of India (SBI) added close to 1 per cent, while Indian Bank, Bank of Baroda, and Indian Overseas Bank traded marginally higher.
As of the June quarter, four PSBs — UCO Bank, Indian Overseas Bank, Punjab & Sind Bank, and Central Bank of India — had government shareholding levels exceeding 90 per cent.
In 2019, the government undertook a large-scale consolidation drive, merging 10 public sector lenders into four bigger entities, as part of efforts to strengthen the sector.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
September 11, 2025, 15:05 IST
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