Stocks

PSU bank stocks surge on move to infuse equity

PTI Mumbai | Updated on February 18, 2011 Published on February 18, 2011

Shares of Bank of Maharashtra (BoM) surged by over 12 per cent on the Bombay Stock Exchange today, boosted by the Government’s decision to infuse Rs 352 crore into the bank by way of preferential allotment of equity shares.

Cheering the move, the scrip advanced by 12.31 per cent to a one-month high of Rs 63.85 on the BSE.

Another lender, Dena Bank, which will receive Rs 539-crore infusion from the Government by way of preferential allotment of equity, saw its shares rise by 2.42 per cent to an early high of Rs 101.50.

Similarly, the shares of Vijaya Bank, which will get Rs 368-crore capital infusion from the Government, rose by 1.94 per cent to an early peak of Rs 86.50.

The Government will infuse Rs 1,259 crore as equity capital into these three PSU lenders as part of a recapitalisation package to shore up their equity capital.

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Published on February 18, 2011
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