UCO Bank clarifies on 'merger of 4 PSU banks' report, calls it 'factually incorrect'
UCO Bank clarifies on 'merger of 4 PSU banks' report, calls it 'factually incorrect'
Stock exchanges BSE and NSE on Monday sought clarification from UCO Bank over a news report, titled "Merger of 4 PSU Banks - UCO Bank, Bank of Maharashtra, Central Bank and Punjab & Sind Bank". This query from the bourses came post-market hours today. In response, the state-owned lender termed the report as "factually incorrect."
"All the decisions relating to merger shall be under the purview of the government. The bank has no role in the decision relating to merger and as of now, it is not in receipt of any information from the government about merger. Hence, the abovementioned news item is factually incorrect," UCO stated.
"As of now, the bank has not received any communication from the government relating to merger. Hence, this news does not hold good and is not expected to have any material impact on the bank," it further said.
On the stock-specific front, UCO Bank shares today settled 0.16 per cent lower at Rs 54.69. At this price, the stock has gained 36.69 per cent in 2024 so far and 94.63 per cent in a year.
Around 12.33 lakh shares changed hands on BSE today. The figure was lower than the two-week average volume of 12.78 lakh shares. Turnover on the counter came at Rs 6.81 crore, commanding a market capitalisation (m-cap) of Rs 65,387.14 crore.
On technical setup, the counter traded lower than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but higher than the 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 45.35. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 39.60 against a price-to-book (P/B) value of 2.39. Earnings per share (EPS) stood at 1.38 with a return on equity of 6.05.
Last month, the bank's Asset Liability Management Committee (ALCO) reviewed the benchmark rates and decided to upwardly revise the 3-month and 1-year MCLR (Marginal Cost of Funds-based Lending Rate) tenors. MCLR is the minimum rate below which a lender is not allowed to lend.
It has raised the 3-month MCLR to 8.5 per cent and 1-year MCLR to 8.9 per cent.
As of March 2024, the government held a 95.39 per cent stake in the PSU bank.
Watch Live TV in English
Watch Live TV in Hindi