PSU banks witnessed a sharp fall on Thursday after cabinet allowed dilution of government stake to 52%.
The union cabinet chaired by the Prime Minister, Narendra Modi, on Wednesday gave its approval for allowing Public Sector Banks (PSBs) to raise capital to meet their additional capital requirements under BASEL-III by diluting Government holding upto 52% in a phased manner.
Out of 27 PSBs, Government of India controls 22 through majority holding. In the remaining 5 banks, SBI holds majority stake. These 27 PSBs control 70% of total branches, deposits and credit in the Indian banking system. Gol has regularly been infusing incremental capital in PSBs. Basel-Ill capital adequacy norms will be fully phased in and applicable by Mar. 31, 2019. Capital requirements of banks have increased under Basel-Ill. If the PSBs are permitted to bring down GOI holding to 52% in a phased manner, they can raise upto Rs 1608.25 billion from the market
| Symbol | LTP | Chng | % Chng |
| CNX PSU BANK | 4,219.30 | -44.35 | -1.04 |
| ORIENTBANK | 312.5 | -7.7 | -2.4 |
| SYNDIBANK | 130.55 | -2.25 | -1.69 |
| PNB | 1,092.95 | -16.5 | -1.49 |
| IOB | 61.3 | -0.85 | -1.37 |
| BANKINDIA | 290.35 | -3.9 | -1.33 |
| ALBK | 129.7 | -1.7 | -1.29 |
| UNIONBANK | 221.2 | -2.75 | -1.23 |
| BANKBARODA | 1,059.00 | -13.2 | -1.23 |
| ANDHRABANK | 88.4 | -1.05 | -1.17 |
| CANBK | 410.55 | -3.8 | -0.92 |
| SBIN | 313.25 | -2.7 | -0.85 |
| IDBI | 71.9 | 0.65 | 0.91 |
