Nifty PSU Bank Hits 12-Year High As State-Run Bank Shares Surge

Shares of public sector banks from Indian Overseas Bank Ltd. to State Bank of India rallied, pushing the NSE Nifty PSU Bank to over a 12-year high through midday trade on Monday.

Nifty PSU Bank ended 3.39% higher on Monday, compared to a 0.29% decline in the NSE Nifty 50. The index has risen 10.11% in the last four sessions.

The PSU banking index rose 4.34% intraday to 5,292.10, the highest level since Nov. 9, 2010. Additionally, it added over Rs 42,000 crore in market value to rise to an all-time high of Rs 12.3 lakh crore on Monday. The market value stood at Rs 11.81 lakh crore, as of Friday.

All 12 constituents compiled by the index advanced, with Indian Overseas Bank, UCO Bank Ltd., Punjab & Sind Bank Ltd., and Central Bank of India Ltd. rising over 10% in trade. Eleven out of the 12 constituents hit a 52-week high intraday, except State Bank of India.

Indian Overseas Bank Ltd. added the most in terms of market value on Monday, as its capitalisation increased by Rs 13,042.66 crore to Rs 87,707.19 crore as of Monday's close. The lender also overtook Punjab National bank Ltd. to became the third largest PSU bank by market capitalisation on Monday.

The bank of followed by State Bank of India in the first position as it added Rs 4,596 crore, which took its market value to nearly Rs 5.39 lakh crore. The Bank of Baroda's market capitalisation also rose to Rs 1.12 lakh crore.