PSU Bank Stock Hits 52-Week Low: Why This Mumbai-Based Banking Stock Fell 10%?

PSU Bank Stock Performance: Amid persistent weak performance of public sector undertaking banks on the Indian stock market, shares of Central Bank of India sank nearly 10% to their 52-week-low mark on BSE on Wednesday.

Central Bank of India shares nosedived more than 10% to hit their 52-week-low mark of Rs 72.99 per share on BSE on Wednesday. CBI's stock crash came in the backdrop of high trading volatility, as it witnessed a massive spurt in volume by 7.20 times.

Central Bank of India share price fell today in tandem with other PSU Bank stocks including Punjab & Sind Bank, UCO Bank, Indian Overseas Bank, Maharashtra Bank, etc. Punjab & Sind Bank stocks were trading 11.13 % lower at Rs 30.98 apiece on NSE.

Central Bank of India Shares Witness High Trading Volatility

Central Bank of India shares, CBI shares witnessed high trading volatility on Wednesday. The company scrip witnessed significant volatility during the premarket session and the first few hours after the the session opened. At 9:19 am, nearly 76,247 CBI shares exchanged hands on BSE today. At 12 pm, 27,874 shares exchanged hands. On NSE, its total traded volume stood at 499.53 lakh with a value of Rs 186.97 crore. CBI stock's total market capitalisation stood at Rs 33,707.42 crore on NSE on Wednesday.

Central Bank of India Share Price Trend

Central Bank of India's share price value has decline over 15.45 in one month. Whereas, it has declined over 30.62% year to date (YTD) and nearly 41% in one year. The company scrip was trading nearly.

Central Bank of India QIP

Central Bank of India shares massive stock decline on Wednesday has come days after the PSU bank announced the conclusion of qualified institutions placement. The company in its BSE exchange filing, dated 28 March, announced issuance of 37,04,61,842 equity shares. These shares for QIP sale were allotted with an issue price of Rs 40.49 per equity share with a discount of Rs 2.13 (equivalent to 4.99% of the floor price). Life Insurance Corporation of India (LIC), National Pension System Trust (NPS), Aditya Birla Sunlife Pension Fund, Bank of Baroda, Canara Bank, Punjab National Bank, etc purchased Central Bank of India's share during the QIP sale.

"We wish to inform you that the Capital Raising Committee of Board at its meeting held today, i.e. 28.03.2025, approved the issue and allotment of 37,04,61,842 Equity Shares, to eligible QIBs at the issue price of ₹ 40.49 per Equity Share which includes a discount of ₹ 2.13 i.e., 4.99% of the floor price, as determined in terms of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018), aggregating to ₹ 1,500 crore (Rupees One Thousand Five Hundred Crores Only), pursuant to the QIP," stated CBI in its BSE filing. After the QIP sale, Central Bank of India's paid-up equity share capital increased from 8680 crore to 9051 crore with a face value of Rs 10 each.

The PSU bank reported a sequential decline in its net profit to Rs 958.93 crore in December quarter. However, its net revenue increased nominally quarter on quarter to Rs 8,509.44 crore during the quarter under review.