Banking stocks are trading higher with the RBI stating that Allahabad Bank, Corporation Bank and Dhanlaxmi Bank have been taken out of the Prompt Corrective Action (PCA) framework.
Allahabad Bank is currently trading at Rs. 47.30, up by 3.45 points or 7.87% from its previous closing of Rs. 43.85 on the BSE. The scrip opened at Rs. 45.45 and has touched a high and low of Rs. 47.45 and Rs. 45.05 respectively. So far 874569 shares were traded on the counter.
Corporation Bank is currently trading at Rs. 31.55, up by 2.35 points or 8.05% from its previous closing of Rs. 29.20 on the BSE. The scrip opened at Rs. 31.10 and has touched a high and low of Rs. 32.15 and Rs. 31.10 respectively. So far 219419 shares were traded on the counter.
Dhanlaxmi Bank is currently trading at Rs. 15.40, up by 1.40 points or 10.00% from its previous closing of Rs. 14.00 on the BSE. The scrip opened at Rs. 15.40 and has touched a high and low of Rs. 15.40 and Rs. 14.70 respectively. So far 1517061 shares were traded on the counter.
The Board for Financial Supervision (BFS) noted that Allahabad Bank and Corporation Bank had received Rs 6896 crore and Rs 9086 crore respectively. This has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with.
