Bank stocks were in huge demand on Monday, surging up to 15 per cent, following a slew of reform measures announced in order to revive the fortunes of the public sector lenders. Defying an overall weak sentiment in the broader market, shares of Bank of Baroda surged 15.15 per cent, Canara Bank climbed 13.42 per cent, Bank of India jumped 8.72 per cent, Union Bank of India (5.29 per cent), PNB (4.09 per cent) and SBI (3.95 per cent) on the BSE.
Among others, Allahabad Bank rose by 5.66 per cent, Indian Overseas Bank gained 4.13 per cent and Bank of Maharashtra was up 3.95 per cent. To revive the fortunes of public sector banks, Government on Friday unveiled a 7-point plan encompassing `20,000 crore immediate fund infusion, creation of a single holding company and minimising political interference.
Announcing the revamp plan named 'Indradhanush' that also includes setting up of a Bank Board Bureau (BBB) for broad-level appointments and a performance-based monitoring mechanism, Finance Minister Arun Jaitley also allayed fears of any panic over mounting bad debts at the state-run banks.
Under the plan, asset reconstruction companies will also be strengthened to deal with bad loan situation.