Bank of India to Assign Preference Shares to Govt.

On 1^st August Bank of India share price opened with a decrease of 2.40 points at Rs. 111.90. Bank of India is going to assign Preference Shares to Government for Rs 1,338 Crore. The bank will look for shareholder approval for the same at its extraordinary general meeting each worth Rs 10 each aggregating up to Rs 1,338 crore on preferential basis to the government. Bank of India said that there is an ever-rising want to increase capital for the bank to comply with Basel II and III capital adequacy norms. The capital raised would be utilized to shore up the capital adequacy of the bank and fund the general business needs.

Previously, this month, the government reported capital infusion worth Rs 22,915 crore in 13 public sector banks for the present financial and Bank of India is to receive Rs 1,784 crore. Yet, the Rs 1,338 crore the bank will receive in lieu of preference equity to the government works out to 75 % of the portion supposed for each of these 13 banks. the Finance Ministry had said in a release further added that 75 per cent of the amount accumulated for each bank is being released to supply liquidity support for lending operations and authorize banks to raise funds from the market. As of now Bank of India share price is currently trading at Rs. 109.50.

The left over amount will be discharged later which will be on the basis of banks' performance, with certain reference to greater efficiency, growth of both credit and deposits and reduction in cost of operations.

Bank of India share price forecast

Bank of India share price met its 52 week low few months back on 25 th May ‘ ’16 at Rs. 78.40. While its 52 week high was recorded at Rs. 188.25 on 17^th August ’15. The stock has a market cap amounting to Rs. 10428.50 (Cr). In order to seek information about the stock’s closest support and resistance level kindly refer to Bank of India share price history.