The Nifty PSU Bank index climbs 1.5% following Finance Minister Sitharaman’s review meeting with the heads of public sector banks.

According to reports, the critical review meeting aims to assess important financial measures, the effectiveness of various government policies, and the performance of Public Sector Banks and Regional Rural Banks.

On August 19, the Nifty PSU Bank index emerged as one of the top gainers among Nifty sectoral indices, increasing by more than 1.5 percent.

This upward trend occurred during a meeting in New Delhi between Union Finance Minister Nirmala Sitharaman and the heads of public sector and regional banks to review their performance.

The Nifty PSU Bank index rose by 1.44 percent in the August 19 session, with Punjab & Sind Bank leading the gains at 4.16 percent. It was followed by Central Bank of India with a 3.22 percent rise, UCO Bank at 2.35 percent, Union Bank of India at 2.16 percent, and Canara Bank at 2.03 percent, among others.

State Bank of India (SBI), the nation’s largest public sector lender, traded in positive territory at Rs 816.70 per share. Bank of Baroda shares increased by 1.50 percent to Rs 247.10 on the NSE, while IDBI Bank saw a 2.50 percent rise to Rs 96.66 per share.

The important review meeting at Vigyan Bhawan aimed to assess key financial measures, the effectiveness of various government policies, and the performance of Public Sector Banks (PSBs) and Regional Rural Banks (RRBs).

In addition, the meeting will address initiatives for micro, small, and medium-sized enterprises (MSMEs).

The agenda includes discussions on the credit-deposit ratio, deposit growth, and asset quality, among other key topics, according to reports.

This is the first comprehensive review meeting following the presentation of the Union Budget and the general elections.

The progress of the National Asset Reconstruction Company Ltd (NARCL) is also likely to be discussed. NARCL, established in 2021 as a government entity, has a majority of its shares held by Public Sector Banks (PSBs), with the remaining shares owned by private banks.

NARCL is registered with the Reserve Bank of India as an asset reconstruction company under the Securitizations and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.