This bank just jumped over 11% on Centre's action; do you have money invested in it? You just gained a hefty sum
Such a blockbuster performance in United Bank shares comes courtesy government announcing a massive infusion of Rs 2159 crore.
There is no stopping United Bank of India share price! It has continued to soar for the second consecutive day. United Bank of India share price was trading at Rs 12.45 per piece, above by Rs 0.92 or 7.985 at around 1035 hours. Interestingly, these shares, within minutes of market opening, had rocketed to an intraday high of Rs 12.85 per piece resulting in an over 11.44% gain. So, if you have invested in United Bank of India shares, then you just became that much more richer.
Why this massive move? Such a blockbuster performance in United Bank shares comes courtesy government announcing a massive infusion of Rs 2159 crore.
In the notification to exchanges, United Bank said, "The exchange(s) are hereby informed that the Central Government vide letter F.No.7/38/2014 - BOA dated December 26,2018 has informed its decision to invest Rs.2159 crore in the equity capital of the Bank by Preferential Allotment under Chapter V of the SEBI ICDR Regulations 2018."
Apart from this, the United Bank also proposed to secure the shareholders' approval to the proposed preferential allotment by a Special Resolution by convening an Extraordinary General Meeting! conducting Postal Ballot shortly. Till such time all formalities are completed and allotment made, the amount shall remain in Share Application Money Alc.
United Bank was one of the banks to receive latest capital infusion. There was a buzz that, the Finance Ministry is planning capital infusion of about Rs 28,615 crore in a list of 7 PSBs.
Including United Bank, other lenders in the list were Central Bank of India, UCO Bank, Syndicate Bank, Oriental Bank of Commerce, Bank of Maharashtra and Bank of India.
The government has already infused Rs 23,000 crore into the PSBs from the total amount for bank recapitalisation of Rs 1.06 lakh crore for FY2018-19. The remaining Rs 83,000 crore will be provided in the remaining three months of the financial year.
Investors are so optimistic on United Bank, that they even shrugged off bank union employees strike uncertainty, which will take place in January 2019.
On December 26, United Bank said that a strike has been proposed "by All India Bank Employees' Association (AlBEA) & Bank Employees Federation of India (BEFI) on 8th January, 2019 and 9th January, 2019 on various issues connected to the banking industry."
In previous trading session, United Bank of India ended at Rs 11.53 per piece up by 4.34%. However, on this day, the bank gave overall 5% return to investors.
If you have invested in United Bank, then you gain an hefty sum via this bank's shares. The United Bank has given nearly 18% return in just 2 days, as it was below Rs 11 on December 26.