Public sector bank stocks surged at 14:35 IST on BSE as FM Jaitley was quoted as saying that the government is working with RBI on resolution of bad loans in the banking sector.
Bank of India (up 6.12%), Bank of Baroda (up 4.96%), Punjab National Bank (up 4.82%), Union Bank of India (up 3.93%), State Bank of India (up 3.33%), Andhra Bank (up 3.26%), Indian Bank (up 2.08%), Central Bank of India (up 1.56%) and Indian Overseas Bank (up 1.12%) edged higher.
Meanwhile, the S&P BSE Sensex was up 172.18 points or 0.59% at 29,504.34.
Finance Minister Arun Jaitley reportedly said the government, in tandem with the Reserve Bank of India (RBI), is working on a radical proposal to resolve the issue of bad debts in the Indian banking system.
The government, RBI and banks have had a series of meetings over the past couple of months to look at ways to address the issue of bad loans estimated at Rs 7 trillion.
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