TIL Desk/Business/New Delhi/ Shares of four public sector banks — Indian Overseas Bank, Bank of India, Central Bank of India and UCO Bank — on Thursday gained up to 10 per cent after the government infused Rs 14,500 crore to improve their financial health. Indian Overseas Bank jumped 10 per cent, Bank of India surged 6.55 per cent, Central Bank of India gained 4.89 per cent and UCO Bank rose 4.64 per cent on the BSE.
The government has infused Rs 14,500 crore, mainly into banks that are under the RBI’s prompt corrective action framework to improve their financial health. Indian Overseas Bank, Central Bank of India and UCO Bank are currently under this framework that puts several restrictions on them, including on lending, management compensation and directors’ fees.
Of the total infusion, Rs 11,500 crore has gone to these three banks while the remaining Rs 3,000 crore has been infused into Bank of India. According to a government notification, Rs 4,800 crore has been provided to Central Bank of India, Rs 4,100 crore to Indian Overseas Bank and Kolkata-based UCO Bank has got Rs 2,600 crore. The capital infusion will help these banks to come out of the Reserve Bank of India’s prompt corrective action framework.
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