Bank stocks in demand, UCO Bank surges over 12%
Bank of Maharashtra gains 3.83%, Central Bank of India 1.36% and Syndicate Bank 1.27% after government infuses ₹10,882 crore in 4 public sector banks
New Delhi: Bank stocks were in demand Tuesday after the government infused ₹10,882 crore in four public sector lenders, with UCO Bank surging over 12%.
Shares of UCO Bank soared 12.10% to close at ₹22.70 apiece on the BSE.
Bank of Maharashtra gained 3.83%, Central Bank of India went up by 1.36% and Syndicate Bank rose by 1.27%.
The government Monday infused ₹10,882 crore in four public sector banks, including UCO Bank and Syndicate Bank, as part of the ₹28,615 crore capital infusion to be done in about half a dozen public sector lenders.
UCO Bank received ₹3,074 crore in the equity by way of preferential allotment on Monday, the bank said in a regulatory filing.
Besides, Bank of Maharashtra got ₹4,498 crore, Syndicate Bank ₹1,632 crore and Central Bank of India ₹1,678 crore.
Buying was also seen in other bank stocks, with Bank of Baroda surging 3.74%, United Bank of India gaining 3.61%, Bank Of India rising 2.21%, Punjab National Bank 2.11% and State Bank of India 1.25%.
Analysts also attributed the rise in banking stocks to Reserve Bank of India governor Shaktikanta Das’ statement that the banking sector is on “course to recovery” as the afflicting non-performing assets recede.
The asset quality of banks showed improvement with gross non-performing assets’ (GNPAs) ratio declining to 10.8% in September 2018 from 11.5% in March 2018, the Reserve Bank of India (RBI) said in Financial Stability Report Monday.
This story has been published from a wire agency feed without modifications to the text.
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