PSU Bank stock zooms nearly 8% on appointment of new MD & CEO; Check the details

Shares of the public sector undertaking UCO Bank traded in the green today and closed at Rs 27.80. The scrip witnessed an intra-day high of Rs 28.30, gaining around 8 percent as compared to the previous closing price of Rs 26.30. The company has a market capitalization of Rs 33,237 crores. 

Keeping a purview of one year, the stock has been able to deliver multibagger returns of 139 percent. It means that if someone would have invested Rs 1 Lakh in the stock, it would have converted to Rs 2.39 Lakhs within a period of one year. 

The surge in the stock prices today are observed after the company, in a regulatory filing with the exchange, informed about changes in their leadership. 

The filing mentioned about the Central Government appointing Shri Ashwani Kumar as the Managing Director & Chief Executive Officer (MD & CEO) of UCO Bank for a period of three years with effect from 1st June 2023. Shri Ashwani Kumar takes charge in place of Shri Soma Sankara Prasad who released his duties on 31.05.2023. 

With more than two decades of rich experience in Banking, Shri Ashwani Kumar served various Public Sector Banks such as Oriental Bank of Commerce, Punjab National Bank, Bank of Baroda, etc. Prior to joining UCO Bank, he was the Executive Director (ED) of Indian Bank. 

Established in 1943, UCO Bank is a banking institution operating as an undertaking of the Government of India. The Bank provides finance to industries and commercial banking services which include corporate banking, personal banking, rural banking, and international banking services to its customers. 

The latest FY22-23 financials published by the company showcases a total income generated of Rs 20,159 crores, up from Rs 18,082 crores of total income reported during FY21-22. 

The latest shareholding data exhibits that the Promoters of the company hold a 95.39 percent stake, and Foreign Institutional Investors hold a 0.16 percent stake in the company. 

Written by Amit Madnani

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