Budget 2017: State-run banks gain 4% on Rs10,000 crore infusion announcement

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New Delhi: Shares of public sector banks on Wednesday rose by as much as 4% as the government announced infusion of Rs10,000 crore in public sector banks in the next fiscal year.

Union Bank of India jumped 4.34%, Bank of Baroda rose 3.27%, State Bank of India went up 3.13% and Punjab National Bank gained 3.12% on the BSE.

Among others, shares of Syndicate Bank gained 2.31% and Bank of India rose 2.25%.

Read here: Full text of Arun Jaitley’s Union budget speech

The government will infuse Rs10,000 crore in public sector banks in the next fiscal year and more will be provided if required, finance minister Arun Jaitley said in the Budget speech.

“As per the Indradhanush plan, the public sector banks will be provided with Rs10,000 crore in the next fiscal. Additional allocation would be made if required,” he said, while presenting Budget 2017-18.

Under Indradhanush roadmap announced in 2015, the government will infuse Rs70,000 crore in nationalised banks over four years, while they will have to raise a further Rs1.1 trillion from the markets to meet their capital requirement in line with global risk norms, known as Basel III