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Bank of India stock rises 35% in 20 days amid likely PCA exit, infusion of govt funds

Bank of India stock rises 35% in 20 days amid likely PCA exit, infusion of govt funds

The midcap stock rose up to 2.19% to 105.20 in trade today. Interestingly, the stock has gained 24% in the last one month- the maximum rise for any Indian lender during the period.

The Bank of India stock rose in trade today after the state-run lender said the government has decided to infuse Rs 10,086 crore in the bank as part of Rs 28,615 crore capital infusion to be done in about half a dozen public sector lenders.

The midcap stock rose up to 2.19% to 105.20 in trade today. Interestingly, the stock has gained 24% in the last one month- the maximum rise for any Indian lender during the period.

On November 30, the stock stood at 84.85 level. It fell to 77.65 on December 10. Since then, the stock has gained 35.47% till date amid reports that the RBI may remove the bank from its prompt corrective action (PCA) list.

Also read: KIOCL stock rises over 12% on govt plan to cut stake via follow on public offer

Meanwhile, the lender on Saturday said the Rs 10,086-crore fund infusion would be by way of preferential allotment of shares.

The board of directors would be considering by way of circular resolution on or after January 2, 2019, the proposal for raising capital by this infusion and further issue of equity shares at an appropriate time and other incidental matters, it said.

The stock has been gaining for the last three days and has risen 3.17% in the period. The banking stock has lost 38.72% during the last one year and fallen 38.83% since the beginning of this year.

The stock is trading above its 50 day and 200 day moving average of 88.41 and 88.09 respectively.

Meanwhile, the Sensex and Nifty were trading marginally lower in afternoon trade today.

While the Sensex fell 26 points to 36,050, Nifty was down 3 points to 10,857 level.

Earlier, the Sensex and Nifty opened higher on the last trading day of the year. While the Sensex rose 200 points to 36,276, Nifty gained 60 points to 10,920.

Edited by Aseem Thapliyal