Karnataka Bank Share Price Hits Yearly Peak Post 8% Surge — Key Trigger Explained
The Karnataka Bank share price jumped 8.42% to Rs 215.59 apiece, the highest level since Oct 13.
The Karnataka Bank Ltd. share price was trading shy of its yearly peak in Tuesday's price after Aditya Halwasiya bought shares in the Quant Mutual Fund-backed private lender.
Halwasiya, chairman and managing director, Cupid Ltd. accumulated 83 lakh shares in last two sessions. His stakes in The Karnataka Bank stood at 2.19%.
Halwasiya is also a board member at the Tourism Finance Corporation of India, Apollo Micro Systems and Olka Technologies.
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The Karnataka Bank is undergoing a turnaround under a new management. The board appointed veteran Raghavendra Srinivas Bhat as the managing director and chief executive officer.
Management of the private lender is expecting a higher growth in the second half. The bank will focus on the expense cut and recovery for non-performing assets.
Net interest margin rose 10 basis points to 2.72% on the quarter during July–September. The net non-performing asset was at 1.35% in the same period compared to 1.44%.The 12-month price-to-book ratio was at 0.62 times.
The Karnataka Bank share price jumped 8.42% to 215.59 apiece, the highest level since Jan 1. It has extended gains to the third session. The Karnataka Bank share price rose 7.67% to Rs 214.10 apiece as of 2:50 p.m. compared to 0.01% advance in the NSE Nifty 50 index.
The stock advanced 3.36% in 12 months, while it declined 0.15% on a year-to-date basis. Total traded volume so far in the day stood at 9.4 times its 30-day average. The relative strength index was at 80.44, which implied the stock was overbought.
Three analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 20.6%.
