The UCO Bank stock zoomed higher in early trade today in an otherwise weak market after the state owned lender said it has received Rs 3,074 crore in the equity by way of preferential allotment on Monday. The stock rose up to 15.56% higher to 23.40 intra day compared to the previous close of 20.25 level on the BSE.

On the NSE, the midcap stock rose 15.76% higher to 23.50 level compared to the previous close of 20.30.

The stock opened with a gain of 5.43% at 21.35 level on the BSE.

The stock has gained 22.74% during the last one month.

Currently, the stock was trading at 22.40 level, higher by 10.62% on the BSE.

The bank in a communication to the bourses said, "In term of Regulation 30 of the SEBI (LODR) Regulation 2015, the exchanges are hereby informed that Govt of India vide letter No. F.No.7/38/2014-BOA dated 26.12.2018 has conveyed its decision to invest Rs. 3,074 Crores in the equity of the Bank by way of preferential allotment and Bank hos received the amount on 31.12.2018 (i.e. Today)."

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

The government pumped in Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds.

The government had earlier announced an infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been disbursed, while Rs 42,000 crore is remaining. Earlier this month, Finance Minister Arun Jaitley said the government would put an additional Rs 41,000 crore in PSBs over and above what was announced earlier.

Meanwhile, the Sensex and Nifty were trading lower in afternoon trade. While the Sensex fell 78 points to 35,989, the Nifty was down 25 points to 10,836 level.

Edited by Aseem Thapliyal