New Delhi, Nov. 17 -- Shares of PSU banks rose by up to 4% during Monday's trading session following news that the finance ministry is drafting a strategy for the next round of mergers among public sector banks, with an announcement expected in April or May. A report from Informist indicated that these mergers will occur in 2-3 phases rather than all at once.

Shares of Central Bank, UCO Bank, Punjab & Sind Bank, Indian Overseas Bank, Bank of Maharashtra, other PSU banks rose up to 4%.

As per the Informist report, there are currently 12 PSU banks, and the goal is to consolidate to a maximum of 6-7 nationalized banks that are larger in scope than their present structure. The government might initially merge 1-2 smaller banks before integr...