PSU banks stocks gain 3-10% in a day  

CHENNAI: Stocks of PSU banks are on fire. Over 20 counters went up between 3-10 % on Tuesday with stocks such as SBI, Bank of India, Bank of Baroda, Canara Bank, Indian Bank, Oriental Bank, and Corporation Bank touching their 52-week highs. Marketmen said investors are buying shares on expectations of better profits linked to advance tax numbers and to benefit from the valuation gap existing vis-a-vis private banks. 

Out of the 22 listed PSU banks, 21 stocks ended in green with Indian Bank (10.87%) leading the gainers, followed by Bank of India (8.88%), IDBI Bank (6.86%), Dena Bank (6.85%), IOB (5.86%), Allahabad Bank (5.83%), Canara Bank (5.57%), State Bank of Travancore (5%) - all finishing with lofty gains. Investor wealth in these 21 stocks rose by Rs 11,000 crore in a single session.

Encouraging advance tax numbers from State Bank of India, Bank of India and Bank of Baroda rubbed off on the whole PSU lenders pack.According to sources,SBI paid over Rs 1,800 crore and Bank of India gave Rs 270 crore as advance tax for the July-September quarter - higher than expectations and April-June numbers.

SBI, the largest bank in the country by market value, is learnt to have paid 70% more as advance taxes compared to April-June quarter. The outgo for Bank of India nearly doubled and that of Bank of Baroda was up by 60%. 

From the pages of THE ECONOMIC TIMES

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