InvestorQ : Why did the PSU bank stocks like BOB and PNB rally on 12 August?
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Why did the PSU bank stocks like BOB and PNB rally on 12 August?

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4 months ago
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Most of the PSU banking shares were up on 12 August with the PSU Banking Index up by 4% on the NSE. This was after the government decided to extend the Ratna title to SBI and BOB. The Ratna title gives them greater financial autonomy.

Punjab National Bank was up 5% followed by Bank of Baroda up 4% and SBI was up by 3.5% on 12 August. The positive sentiments also rubbed off on most of the PSU banks and the movement was strange on a day when private banks were under pressure.

PSU banks will benefit from RBI's recent measures like additional liquidity of Rs.10,000 crore and the extension of the MSME restructuring scheme to individuals too. This will at least optically curtail the NPAs in the system.
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