Five out of the twelve public sector banks have their shares trading near the nominal value as of Friday.
Despite the rally on the benchmark indices of the stock market, five state run banks are trading closer to the nominal value of their equity shares on stock exchanges. Indian Overseas Bank is trading below the nominal value of Rs. 10 per share. At BSE, the stock concluded at Rs 9.27 as of Friday while the Sensex benchmark index was at 40,509.
The bank based in Chennai, tapped the market in the initial leg by trading stocks at the nominal value of Rs 10. The other four banks out of the twelve public sector banks traded closer to the face value of Rs 10 per share. These are inclusive of Bank of Maharashtra, UCO Bank, Punjab and Sind Bank, and Central Bank.
Bank of Maharashtra had its shares closed at 11.29 per unit and those of Punjab and Sind Bank ended at Rs 10.81 per unit. Central Bank of India performed relatively well with Rs 12.45 per share as well as UCO bank with Rs 12.14 per share.
The narrow range of limited free float, is being considered as one of the reasons behind the meagre interest of investors in these stocks. Most of these banks have over 90 percent of shares under the government with a very small amount available for public trade.