Share price of Indian Overseas Bank rose over 12 per cent on Thursday, September 30, a day after banking regulator Reserve Bank of India (RBI) removed the bank from the Prompt Corrective Action (PCA) framework. On Thursday, Indian Overseas Bank opened at Rs 23.95 on the BSE, which was at an intraday high of Rs 26.60 and an intraday low of Rs 22.50 in the trading session so far.
In a circular on Wednesday, the central bank said the performance of Indian Overseas Bank was reviewed by the Board of Financial Supervision and noted that the bank is not in contravention of PCA norms, as per the published results for the year. Ends March 31, 2021.
The RBI said the state-run lender has provided a written commitment that it will adhere to the norms of minimum regulatory capital, net NPA (non-performing assets) and leverage ratio on an ongoing basis.
The RBI also said that Indian Overseas Bank has informed about systemic and structural reforms. The central banking regulator had placed Indian Overseas Bank under the PCA framework in October 2015.
On NSE, Indian Overseas Bank opened at Rs 23.75, registering an intraday high of Rs 24.50 and an intraday low of Rs 22.50 in the session so far. It was trading 12.96 per cent higher at Rs 23.10 last time on NSE.
Shares of Indian Overseas Bank were trading at Rs 23.05, up 12.44 per cent last time on BSE.
At 1:12 pm, the BSE Sensex was trading at 59,283.51, down 129.76 points or 0.22 per cent on the BSE.