Shares of Indian Overseas Bank (IOB) on Friday advanced 6.5 per cent after the company said it will get a capital infusion of Rs 4,360 crore from the government in the current financial year for meeting regulatory requirement.
The scrip zoomed 6.48 per cent to close at Rs 11.99 on the BSE. During the trade, it spurted 14.12 per cent to Rs 12.85.
On the NSE, it climbed 5.75 pr cent to close at Rs 11.95.
In August, the finance ministry had announced a capital infusion of Rs 3,800 crore in the state-owned lender. This has now been increased by Rs 560 crore.
"The bank has received vide letter dated December 25, 2019 for release of Rs 4,360 crore towards contribution of the central government in the preferential allotment of equity shares (Special Securities/Bonds) of the bank during 2019-20 as government's investment," IOB said in a BSE filing.
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