Stocks of Central Bank of India, Indian Overseas Bank (IOB), Bank of India (BOI) and UCO Bank gained 3 – 6 per cent on Thursday’s trade, reacting positively to the government’s Rs 14,500 crore of capital infusion proposal as it could help them exit the prompt corrective action (PCA) framework.
This is money promised for in FY21 and announced in the budget, and would be infused as zero-coupon bonds (ZCBs). Interestingly, in case of Bank of Maharashtra, when the government infused Rs 5,500 crore of capital as ZCBs, media reports suggested that the central bank ...
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