Indian Overseas Bank (IOB) rose 4.14% to Rs 11.57 after the bank received capital infusion of Rs 4,360 crore from the government.
Shares of the public sector bank traded in the range of Rs 11.50 and Rs 12.10 so far during the day.In an exchange filing made after market hours on Friday (3 January), IOB said it has received the amount as contribution of the government in preferential allotment of equity shares during the financial year 2019-20 as government's investment.
Fresh capital infusion in the PSU banks by the government is a part of the announcement made by Finance Minister Nirmala Sitharaman, in her maiden Budget in July 2019.
IOB reported a net loss of Rs 2,253.64 crore in Q2 September 2019 compared with a net loss of Rs 487.26 crore in Q2 September 2018. Total income fell 6.1% to Rs 5,024 crore in Q2 September 2019 as against Q2 September 2018.
The Net Interest Income (NII) declined 6.52% to Rs 1,204 crore in Q2 September 2019 as against Rs 1,288 crore in Q1 June 2019. NII fell 0.33% from Rs 1,208 crore in Q2 September 2018.
Government of India holds 92.52% stake in IOB (as on 30 September 2019).
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