The BSE Capital Goods Index also gained 2.84 per cent.

Speaking at the press conference, Sitharaman said that banks would soon make home and car EMIs cheaper.

Though lack of credit demand exists in the economy, there is no supply-side constraint said SBI Chairman Rajnish Kumar.

The campaign comes at a time when the economy is facing headwind and it has slowed to a 5-year low of 6.8 per cent.

Participating banks suggested that government should simplify GST framework and lower GST rates to enhance tax compliance.

The bank has recovered about Rs 800 crore in the first quarter, said Syndicate Bank MD Mrutyunjay Mahapatra.

The capital infused was largely consumed to tide over losses resulting from provisions required on non-performing assets.

Banks need to commensurately transmit rate cut benefit in lending, said an official release.

In the last few months, there have been signs of revival in public sector banks.

The country's largest bank, State Bank of India, has lending worth Rs 1.76 lakh crore classified as NPA till march 2019.