Shares of Bank of India (BoI) jumped 7.5 per cent on Tuesday after the company recovered Rs 7,000 crore worth Standby letters of Credit (SBlC) in the last two months and the balance of Rs 2,000 crore would be recovered in another two months.The stock soared 7.47 per cent to end at Rs 102.20 on BSE. Intra-day, it zoomed 14.98 per cent to Rs 109.35.
At NSE, shares of the company surged 7.41 per cent to close at Rs 102.15. The company's market valuation rose by Rs 841.06 crore to Rs 12,106.06 crore.
In terms of equity volume, 66.43 lakh shares of the company were traded on BSE and over 6 crore shares changed hands at NSE during the day.
This recovery will substantially improve the bank's balance sheet, Bank of India Executive Director N Damodharan said on Monday in Coimbatore. The bank is aiming to bring down its net NPA ratio substantially, to below six per cent, he said.
Meanwhile, buying was also seen in other bank stocks, with Oriental Bank of Commerce surging 7.07 per cent, Bank of Baroda 6.92 per cent, Union Bank of India 6.85 per cent, Syndicate Bank 5.87 per cent, Allahabad Bank 5.86 per cent, Canara Bank 5.70 per cent, PNB 3.59 per cent and SBI 0.81 per cent on BSE.
Standby letters of Credit is a document issued by a bank, which serves as a guarantee.