Bank of India gains after cutting base rate by 25 basis points

Bank of India gained 1.56% to Rs 140 at 9:45 IST on BSE after the bank said that it has decided to cut its base rate by 25 basis points to 9.7% from the earlier 9.95% effective from 5 October 2015.

The bank made announcement about the reduction in base rate after market hours yesterday, 29 September 2015.

Meanwhile, the BSE Sensex was up 233.98 points, or 0.91%, to 26,012.64.

On BSE, so far 39,945 shares were traded in the counter, compared with an average volume of 5.35 lakh shares in the past one quarter.

The stock hit a high of Rs 140.80 and a low of Rs 139.15 so far during the day. The stock hit a 52-week high of Rs 311.75 on 2 January 2015. The stock hit a 52-week low of Rs 126.30 on 4 September 2015.

The stock had underperformed the market over the past one month till 29 September 2015, falling 2.58% compared with 2.33% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 19.88% as against Sensex's 6.75% fall.

The mid-cap public sector bank has an equity capital of Rs 664.91 crore. Face value per share is Rs 10.

After a policy meet yesterday, 29 September 2015, the Reserve Bank of India (RBI) had cut repo rate by more than expected 50 basis points. One percent is equal to 100 basis points.

Base rate is the minimum rate of interest that a bank is allowed to charge from its customers. Unless mandated by the government, RBI rule stipulates that no bank can offer loans at a rate lower than base rate to any of its customers.

Bank of India's net profit declined 83.9% to Rs 129.72 crore on 2.9% rise in total income to Rs 11659.16 crore in Q1 June 2015 over Q1 June 2014.

As per the shareholding pattern, the Government of India holds 64.43% stake in the bank as at 30 June 2015.

Powered by Capital Market - Live News