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The UCO Bank increased around 6 percent share on Tuesday. Following, the state owned lender appeal to RBI to take it down from the Prompt Corrective Action (PCA) framework. It stock gained up to 6.03 percent to Rs 14.14 against the previous close of Rs 13.59 on BSE. The market cap of the firm soared up to Rs 13,914 crore. Around 18.91 crore shares exchanged hands leading to a turnover of Rs 2.67 crore. On June 26, the firm’s share hit 52- week high of Rs 16.76 and on 19th April, 2021, the share struck a 52 week low of Rs 10.61.
In the past 3 days, UCO Bank’s stock have increased to 4.47 percent. It’s share is trading higher than 5 day, 20 day, 50 day, 100 day, 200 day moving average. In one year, the stock has obtained 6.39 percent and increased 10.33 percent since the beginning of the year. The share has acquired around 24 percent in a month.
AK Goel, managing director and CEO of UCO Bank on Monday expressed that the lender was hopeful of coming out of the Prompt Corrective Action (PCA) framework very soon. He further added that the bank had already written to RBI requesting it to withdraw PCA after the capital infusion.
PCA is set off when banks breach certain regulatory requirements such as return on asset, minimum capital, and quantum of the non-performing asset. It’s restrictions limit the bank in various ways to lent freely and force it to operate under a restrictive environment which is almost a threat to the growth.
Regarding the issue of the latest capital infusion through Zero Coupon bonds, AK Goel commented, “I don’t foresee any hurdle and remain hopeful that we will get the regulators approval to come out of PCA.”
In the last round, the government by issuing non-interest bearing, non transferable bonds infused Rs 14,500 crore of equity into Central Bank of India, Indian Overseas bank, Bank of India and UCO bank .
the UCO bank have obtained Rs 2600 crore and consecutively the capital adequacy ratio of the bank rose to 13.74 percent against a requirement of 10.8 percent of which tier-I had increased to 11.14 percent up from the mandatory requirement of 8.8 percent.
Goel further added, “We have allotted it to the government with prior approval of the RBI.”