Bank of India stock hits 52-week high after lender raises Rs 1,500 crore

Shares of Bank of India gained over 5% in the last two sessions after the state-run lender said it has raised Rs 1,500 crore by allotting Basel-III compliant additional Tier-I bonds, to seven investors. The bond issue opened on December 1 received strong response from investors, getting bids worth Rs 6,367 crore against offer size of Rs 1,500 crore.

Buoyed by the development, Bank of India shares have risen 5.23%  or Rs 4.35 since Thursday last week. With gains in two sessions, the stock touched a fresh 52-week high of Rs 87.50 in early trade today. Bank of India stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

The stock has gained 61.46% in a year and risen 70.11% in 2022. In a month, the stock has zoomed 30.47%.

Total 3.61 lakh shares of the firm changed hands amounting to a turnover of Rs 3.12 crore in the morning session. Market cap of the bank rose to Rs 5,495 on BSE.

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The bond issue was subscribed 12 times and the coupon rate was 8.57 per cent per annum. On December 1, the bank said the issue consisted of Rs 500 crore base issue and a green-shoe option of Rs 1,000 crore.

The proceeds will be used to shore up the regulatory and growth capital requirements of the bank, it added.

In Q2 of this fiscal, Bank of India’s net profit fell 9% year-on-year as the lender surprisingly increased provisions despite a fall in non-performing assets (NPAs). Net profit fell to Rs 960 crore in the quarter ending September from Rs 1,051 crore a year ago. Total provisions doubled to Rs 1,912 crore in the quarter from Rs 894 crore a year ago.