Indian state-run lenders gain on report government mulling to hike foreign investment cap

Bank Of India

27/10/2025 10:13

** Indian state-owned banks .NIFTYPSU settle nearly 2% higher after jumping as much as 3% to record high of 8,053.40

** India is planning to allow direct foreign investment in state-run banks of up to 49%, more than double current limits, Reuters reports citing person directly involved in policy discussions

** Bank of India BOI.NS leads gains on sub-index with 4.3% jump, trailed by Bank of Baroda's BOB.NS 2.8% climb

** Top lender SBI SBI.NS up 2%, Punjab National Bank PNBK.NS rises 2.3%

** Finance ministry and the central bank did not immediately respond to Reuters' emails seeking comments

** YTD, PSU Banks index up 22.8% vs Nifty 50's .NSEI 9.9% climb

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.tandon@thomsonreuters.com))