On Tuesday, as soon as the Bank of India recovered Rs 7,000 crore worth of Standby Letter of Credits from other banks, it was observed that the banks stocks saw heavy buying interest in morning trade session.
Today, the PSU Bank index was up 3.5 percent. Looking closely, you will notice that the Nifty Bank index gained 1 percent or 300 points, outperforming the Nifty that rose 0.3 percent.
List of banks that rallied up to 10 percent includes Bank of India, OBC, Union Bank, Bank of Baroda, Andhra Bank, Syndicate Bank, PNB, Canara Bank, Allahabad Bank, Indian Bank, IDBI Bank and SBI.
In early trade on Tuesday, it was seen that the shares of Bank of India climbed as much as 10 per cent. This was observed after the reports came into notice that the public sector lender has recovered Rs 7,000 crore of non-performing assets.
At 9.50 a.m., the scrip was trading 9.20 per cent up at Rs 103.85. However, the benchmark BSE Sensex was up 47 points, or 0.14 per cent, at 33,965 level.