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Bank stocks in demand after government infusion; UCO Bank surges over 12%

The government on Monday infused Rs 10,882 crore in four public sector banks, including UCO Bank and Syndicate Bank

Press Trust of India  |  New Delhi 

UCO bank, UCO

were in demand on Tuesday after the government infused Rs 10,882 crore in four public sector lenders, with surging over 12 per cent.

Shares of soared 12.10 per cent to close at Rs 22.70 apiece on the BSE.

gained 3.83 per cent, Central Bank of India went up by 1.36 per cent and rose by 1.27 per cent.

The government on Monday infused Rs 10,882 crore in four public sector banks, including and Syndicate Bank, as part of the Rs 28,615-crore capital infusion to be done in about half a dozen

UCO Bank received Rs 3,074 crore in the equity by way of preferential allotment on Monday, the bank said in a regulatory filing.

Besides, got Rs 4,498 crore, Rs 1,632 crore and Central Bank of India Rs 1,678 crore.

Buying was also seen in other bank stocks, with surging 3.74 per cent, gaining 3.61 per cent, Bank Of India rising 2.21 per cent, 2.11 per cent and State Bank of India 1.25 per cent.

Analysts also attributed the rise in banking stocks to Governor Shaktikanta Das' statement that the banking sector is on "course to recovery" as the afflicting non-performing assets recede.

The asset quality of banks showed improvement with gross non-performing assets' (GNPAs) ratio declining to 10.8 per cent in September 2018 from 11.5 per cent in March 2018, the (RBI) said in Financial Stability Report Monday.

First Published: Tue, January 01 2019. 19:05 IST
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