Bank stock jumps 10% after block deals at a premium
SYNOPSIS: Karnataka Bank surged nearly 10 percent after 3.9 million shares changed hands in premium block deals. The stock broke above key moving averages, with volumes jumping to nearly 15 times the 30-day average.
During Friday’s trading session, shares of a bank providing a wide range of banking & financial services involving retail, corporate banking, and para-banking activities surged nearly 10 percent on the stock exchanges. What triggered this significant jump? Let’s explore the details in this article.
At 03:23 p.m., shares of Karnataka Bank Limited were trading in green at Rs. 187.9 on BSE, up by around 7 percent, compared to its previous closing price of Rs. 175.15, with a market cap of Rs. 7,104 crores.
The stock has delivered negative returns of around 6 percent in one year, but has gained by nearly 3 percent in the last one month.
What’s the News:
Shares of Karnataka Bank Limited rallied nearly 10 percent on Friday, hitting an intraday high of Rs. 193 on the BSE, following a large block deal.
According to market sources, nearly 3.9 million equity shares changed hands across six block deals between 2:00 p.m. and 2:30 p.m., at premiums ranging from 4.2 percent to 9.7 percent to the previous close. However, the identities of the buyers and sellers involved in these transactions have not yet been disclosed.
During the session, the stock also moved decisively above its 50-day, 100-day, and 200-day simple moving averages, reflecting strong momentum. Trading activity was notably elevated, with 29.4 million shares exchanged – representing 14.7 times the stock’s 30-day average volume.
Financials & more:
Karnataka Bank reported a marginal decline in its net interest income (NII), showing a year-on-year decrease of around 13 percent from Rs. 833.6 crores in Q2 FY25 to Rs. 728 crores in Q2 FY26.
Likewise, its net profit decreased during the same period from Rs. 336.24 crores to Rs. 319.2 crores, representing a decline of more than 5 percent YoY.
Karnataka Bank Limited is engaged in the business of providing a wide range of banking and financial services involving retail, corporate/wholesale banking, para-banking activities, treasury operations and foreign exchange business.
Written by Shivani Singh
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