Home >market >stock-market-news >Bank stocks in demand, UCO Bank surges over 12%

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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