Shares of UCO Bank surged a little over 4 percent in early trade on Wednesday, November 16, two days after the bank hiked the interest rates on fixed deposits under ₹2 crore.
The stock opened on a negative note at ₹14.50 per share today against the previous close of ₹14.55 per share. However, the stock recovered soon and rallied to touch an intraday high of ₹15.15.
At 1:06 pm, the stock was trading 3.0 percent higher at ₹14.99 per share on BSE.
The stock touched a 52-week-high of ₹15.90 on November 9, 2022 and a 52-week-low of ₹10.55 on June 20, 2022, indicating that at the current levels, the stock is trading nearly 44 percent above its 52-week low and over 5 percent below its 52-week high.
In the last 17 years, only 3.44 percent trading sessions saw intraday declines higher than 5 percent.
The stock has shown a growth of almost 30 percent in the past one month while it has grown over 14 percent this year-to-date. However, the shares declined over 53 percent in the last five years.
On November 8, the public sector bank increased the interest rates on fixed deposits under ₹2 crore by up to 45 basis points (bps). On FDs maturing in 7 days to 5 years and above, the bank is now offering an interest rate ranging from 2.90 percent to 5.50 percent for the general public and 3.15 percent to 6.00 percent for senior citizens, the bank said in an official statement.
The bank increased the interest rate on FDs due in 7–29 days by 35 bps, from 2.55 percent to 2.90 percent, and those maturing in 30-45 days by 20 bps, from 2.80 percent to 3.00 percent. On FDs due in the next 46 to 90 days, the bank is now offering an interest rate of 3.50 percent, while on FDs expiring in the next 91 to 180 days, the interest rate has increased by 5 basis points, from 3.70 percent to 3.75 percent.
For FDs maturing in 181- 364 days, the interest rate will be 4.65 percent, 25 bps higher than the earlier 4.40 percent while those maturing in 1 to 2 years will get interest at 5.75 percent, 45 bps higher than the earlier 5.30 percent.
For the quarter ended September 2022, the state-owned bank reported a more than two-fold jump in its net profit at ₹504.52 crore as fall in bad loans resulted in lesser provisioning requirements. The bank had posted a net profit of ₹205.39 crore in the same quarter a year ago, PTI reported.
UCO Bank, founded in 1943, has a market capitalization of ₹17,395.92 crore. The bank offers personal banking, corporate banking, international banking and rural banking services. The bank's loan portfolio includes education loan, gold loan, home loan, personal loan and car loan. Its other services include government business, policies and equated monthly installment (EMI) calculator.
