PSU banks rally ahead of PM Modi's review meeting; UCO, Central Bank jump over 5%

Shares of public sector banks (PSBs) were in upbeat mood with the Nifty PSU Bank index rising nearly 4 per cent in an otherwise weak market on Wednesday, ahead of Prime Minister Narendra Modi's scheduled meeting with the chief executives of state-owned and private banks.

Nifty PSU Bank index surged as much as 3.7 per cent in intraday trade and Nifty Bank index climbed nearly 1 per cent as against 0.76 per cent decline in the benchmark NSE Nifty. The BSE benchmark index Sensex was down 375 points or 0.98 per cent at 38,117, and the NSE Nifty was trading 86 points or 0.76 per cent lower at 11,214, tracking weak cues from global markets.

Bank of Maharashtra, UCO Bank, Central Bank of India, Jammu & Kashmir Bank were among top gainers from the Nifty PSU Bank index, gaining between 5-7 per cent today. State Bank of India (SBI), Bank of Baroda, Punjab National Bank, Union Bank and Bank of India were also trading higher in the range of 2-5 per cent on the NSE.

Also Read: Share Market News Live: Sensex down 300 points, Nifty at 11,260; HCL Tech, RIL, Nestle top losers

PM Modi is slated to chair a high-level meeting with chiefs of banks and Non-Banking Financial Companies (NBFCs) today evening to take stock of the economic situation. Modi would also take stock of the flow of credit during the coronavirus crisis, according to a statement issued by the Prime Minister's Office on Tuesday.

As per the PMO, the topics on agenda include credit products and efficient models for delivery, financial empowerment through technology, prudential practices for stability and sustainability of the financial sector.

Also Read: IDBI Bank stock hits 5% upper circuit on strong Q1 earnings

Modi recently reviewed the performance of the financial sector which has been hit hard by the outbreak of the coronavirus pandemic. He also reviewed the progress of a host of measures announced under the Rs 21-lakh crore Aatma Nirbhar Bharat Abhiyan package to stimulate the economy and help the MSME sector and poor sections of society.

Last month, the Prime Minister had said that the economy is showing "green shoots" as the country emerges from the coronavirus lockdown and underscored the importance of being focussed on both life and livelihood.

By Chitranjan Kumar