Shares of this multibagger Bank stock jumped up to 11 percent on a Block Deal buzz. Moreover, the Bank made a change in the top management appointing a new Managing Director (MD) and Chief Executive Officer (CEO).
With a market capitalization of Rs 4,700 crores, the stocks of South Indian Bank Limited, a Private-sector Bank, opened their trading hour on Friday at Rs 22.45 and currently trade at Rs 22.50. The scrip witnessed an intra-day high of Rs 23.45, near to its 52-week high levels, indicating a gain of approximately 11 percent compared to the previous closing price of Rs 21.10 apiece.
Such bullish sentiments around the stock are observed on a Block Deal taking place pertaining to the shares of the Private bank. According to a CNBC report, over 12 crore shares exchanged hands with the buying and selling parties not known.
Another development that took place in the entity is pertaining to a leadership change. As per a BSE filing dated 17th August 2023, the Reserve Bank of India (RBI) gave its approval to appoint Mr. P R Seshadri as the MD & CEO of South Indian Bank. The appointment is for a period of three years w.e.f. 1st October 2023.
Keeping a purview of one year, the Banking stock has delivered multibagger returns of around 180 percent, i.e., a 1 Lakh investment would have converted to Rs 2.80 Lakhs within a period of one year if someone would have invested in the Bank’s stock.
During the recent quarters, the Private-sector Bank has been able to increase its total income numbers from Rs 2,317 crores during the March 2023 quarter v/s Rs 2,386 crores during the June 2023 quarter. Despite the same and increased cost pressures, the Bank’s net profit figures took a hit shifting down from Rs 333 crores to Rs 202 crores.
As per the shareholding data available for the June 2023 quarter, the Retail Investors hold a 78.57 percent stake followed by the Foreign Institutional Investors (FIIs) holding a 13.59 percent stake in the Bank.
South Indian Bank Limited is engaged in the business of providing personal as well as business banking services including term deposits, saving accounts, internet banking, and many more.
Written by Amit Madnani
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