Even though overall banking stocks were performing a sluggish note, however, PSU bank stocks rallied on Friday's trading session after the Finance Ministry extended the Emergency Credit Line Guarantee Scheme for 26 sectors. Under ECLGS 2.0, PSU banks are the major creditors compared to the private banks.
At around 12.51 pm, Nifty PSU Bank was trading at 1,561.60 up 1.47%. The index has touched the day's high of 1,566.85.
On the index,
Jammu & Kashmir Bank was the top gainer, soaring by 6.86% followed by Bank of Maharashtra which jumped by 5.51%.
Canara Bank and PNB advanced by over 4% each. While near 3% gain each was seen in Union Bank and Bank of India.
Central Bank, UCO Bank,
Bank of Baroda and Indian Bank zoomed by 1-2.5%.
However,
SBI and Indian Overseas Bank traded marginally down.
The Finance Ministry has extended the Emergency Credit Line Guarantee Scheme ( ECLGS) through ECLGS 2.0 for the 26 sectors identified by the Kamath Committee and the healthcare sector.
Under ECLGS 2.0, companies with an outstanding credit of above Rs50cr and not exceeding Rs500cr as of February 29, 2020, which are less than or equal to 30 days past due as on February 29, 2020, are eligible.
Notably, loans under ECLGS 2.0 has a 5-year tenor, with a 12-month moratorium on repayment of principal.