United Bank shares gain over 4 per cent after RBI eases lending restrictions

United Bank of India shares surged over 4 per cent on Thursday, after the Reserve Bank of India (RBI) eased some lending restrictions put on the lender.

It is an indication that the bank is getting out of its troubles, traders said.

In November 2013, the RBI banned the bank from lending over Rs 10 crore to a single borrower after the lender's bad loans piled up.

Rating agency Fitch said in February last year that the bank was at risk of becoming the first lender in Asia to breach the minimal capital ratios mandated by Basel III norms.

At 12:20 pm, the shares of United Bank of India were trading at Rs 28.15 on the Bombay Stock Exchange (BSE) Sensex, up 4.45 per cent or 1.20 points.

On similar lines, the shares of the bank were trading at Rs 28.10 on the National Stock Exchange (NSE) Nifty, up 4.27 per cent or 28.10 points.

(Reuters)