SBI, UCO Bank, other PSU lenders surge up to 4% on the latest banking sector reform

Shares of State Bank of India Ltd., UCO Bank Ltd., and every constituent of the Nifty PSU Bank index has surged up to 4% on Friday, October 10, in response to the latest banking sector reform.

According to the Appoints Committee of the Cabinet has approved revised guidelines for the selection of whole-time directors for PSU Banks.

State Bank of India

, which has four Managing Directors, will now have three from the public sector, and one can be appointed from the private sector, as per the new reform.

The Nifty PSU Bank is currently trading with gains of 1.6%, with all constituents trading with gains. The index has now gained in five out of the last six weeks.

UCO Bank is the top gainer on the PSU Bank index, currently trading with gains of over 3%, followed by Indian Overseas Bank, which has gained 2.4%.

Shares of State Bank of India, India's largest lender, are also trading with gains of over 2.2%. The stock has also gained in three out of the last five trading sessions.