Capital infusion plan lifts Vijaya Bank stock

The stock has gained about 12% since last Thursday

The Vijaya Bank stock has gained about 12 per cent since last Thursday and much of this is being attributed to its plan for raising capital of Rs 1,000 crore.

Nikhil Rungta of Anand Rathi explains: "Vijaya Bank did not participate in the capital infusion round in September last year and is likely to benefit from the next round." The government's next round of capital infusion is expected by March.

However, given the asset quality pressures faced by the bank, analysts feel much of the infusion might be consumed for its business operations, leaving little leeway for other plans.