01 Apr , 2021 By : Kanchan Joshi
Shares of four public sector banks i.e., Indian Overseas Bank, Bank of India, Central Bank of India and UCO Bank rose up to 10% on Thursday after the government infused Rs14,500 crore in these banks to improve their financial health.
Indian Overseas Bank shares gained around 10% while Bank of India jumped 6.55% in trade. Central Bank of India was trading 4.89% higher and UCO Bank was up 4.64% on the BSE.
Out of the total infusion, Rs4,800 crore has been provided to Central Bank of India, Rs4,100 crore to Indian Overseas Bank and Kolkata-based UCO Bank has got Rs2,600 crore and Rs3,000 crore has been infused into Bank of India.
The fund infusion has been done through non-interest bearing recapitalisation bonds with maturity varying between March 31, 2031 and March 31, 2036.
Central Bank of India, Indian Overseas Bank and UCO Bank are currently under Reserve Bank of India's prompt corrective action (PCA) framework and the capital infusion is aimed to help these banks to come out of same.
0 Comment