PSU Bank stocks: PSB shares tumbles 20%, UCO Bank tumbles 9%

Shares of Punjab & Sind Bank plummeted 20 per cent on Tuesday, followed by UCO Bank which tumbled nearly 9 per cent from previous close.

PSB, on Friday, had raised ₹1,219 crore through qualified institutional placement (QIP) route, issuing majority of the shares accounting 16.40 per cent to Life Insurance Corporation of India and 8.20 per cent to SBI Life Insurance Co Ltd.

Punjab & Sind also issued 6.15 per cent each to Central Bank of India and Indian Overseas Bank.

UCO Bank’s board on Friday approved allotment of shares to eligible QIBs at a price of ₹34.27 per share, aggregating to ₹1,999 crore. 24.33 per cent of the shares were allotted to LIC and 9.73 per cent to SBI Life.

PSB shares traded 18.91 per cent lower on the NSE as at 11.02 am at ₹35.34 and UCO Bank shares traded 7.20 per cent lower at ₹33.13, hitting a low of ₹32.60.

The Nifty PSU Bank index slipped 0.37 per cent to 6,240.05 at the time of writing. Other major laggards include Union Bank of India, Indian Overseas Bank and Indian Bank.