SBI, Bank of Baroda likely to be awarded ‘Ratna’ title, Nifty PSU Bank Index surges

The Nifty PSU Bank index surged 4% on Wednesday. The main cause of the sudden surge is the government consideration of extending the ‘ratna’ title to state owned lenders like State Bank of India (SBI) and Bank of Baroda.

The Nifty PSU Bank index surged 4% on Wednesday. The main cause of the sudden surge is the government consideration of extending the ‘ratna‘ title to state owned lenders like State Bank of India (SBI) and Bank of Baroda.

As per government rules, a public sector enterprise can be awarded ‘ratna’ title to give them financial autonomy. Currently, there are four categories of ‘PSU ratna’ in India namely; miniratna-II, miniratna-I, navratna and maharatna. These ratna’s are strategically important to the economy and it’s liquidity is essential.

SBI shares gained 5% to 204.25. Bank of Baroda touched Rs. 49.90, up by 4.6%. Other PSU Banks that were in green were Punjab National Bank (rose 3.2%), UCO Bank, Bank of Maharashtra, Central Bank of India, Indian Bank, Canara Bank, and Indian Overseas Bank that were up in the range of 1.2-2.7%.

At 3:13, Sensex was trading at Rs. 38,375.84.