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Last Updated : Mar 29, 2016 11:18 AM IST | Source: Moneycontrol.com

BoI & UCO Bank gain 2.5%, to get capital from government

Bank of India today said the Government of India has conveyed their approval to infuse capital funds to the tune of Rs 1,150 crore in the bank by way of preferential allotment of equity shares.

 
 
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Moneycontrol Bureau


Shares of Bank of India and UCO Bank climbed over 2.5 percent intraday Tuesday on capital infusion by the Government of India.


Bank of India today said the Government of India has conveyed their approval to infuse capital funds to the tune of Rs 1,150 crore in the bank by way of preferential allotment of equity shares.

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Yesterday, board of directors of UCO Bank considered proposal for issue of equity shares to Government of India on preferential basis against their proposal for capital infusion of Rs 935 crore, which is subject to necessary approvals from shareholders and other authorities.


Recently sources told CNBC-TV18 that the government is all set to recapitalise banks by pumping in Rs 5,000 crore, the last tranche of its FY16 target, into 7-8 public sector banks this week.


Some of the country’s largest public lenders like State Bank of India, Punjab National Bank, Bank of Baroda etc., may not be on that list while Indian Overseas Bank, Oriental Bank of Commerce, Central Bank, Vijaya Bank and Dena Bank among others could get a slice of the funding.


Lending by public sector banks have been slowed as cleaning up of huge non-performing assets hit their balance sheets in recent past. Analysts and even majority of public sector banks said fourth quarter earnings (Q4FY16) will definitely hit by NPAs after the Reserve Bank of India asked banks to clean up stressed assets by March 2017.


At 11:05 hours IST, the scrip of UCO Bank was quoting at Rs 37.25, up 0.81 percent and Bank of India was trading at Rs 94.70, up 1.18 percent on BSE.



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First Published on Mar 29, 2016 11:18 am
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