New Delhi, July 14: At a time when infotech scrips are hogging the limelight on the bourses, some punters have shifted their attention to banking stocks. Their target - banks which are well-managed and have a low NPA level. Among the banking scrips which have found favour with bull operators include Corporaiton Bank, HDFC Bank and ICICI Banking Corporation. ICICI Bank has appreciated by nearly 22 per cent from Rs 34.6 to Rs 42.2. The daily volumes in the counter have also risen.HDFC Bank has risen by 22 per cent in the last six trading sessions. From Rs 57 on July 7, the scrip has risen to Rs 69.90 with a daily volumes of around 4 lakh shares. Corporation Bank, an FII favourite, has gone up by 36 per cent in the past seven trading sessions. After slipping to a low of Rs 96.45 on July 6, the stock zoomed to Rs 131 on July 14 (volumes 1.65 lakh shares).
Corporation Bank had risen by almost 32 per cent from Rs 96.45 on July 6 to Rs 127 on July 10. The scrip touched a high of Rs 155 in April 1998 (againstthe public offer price of Rs 80) and a low of Rs 96.25 on July 3.
The bank has posted an impressive growth in operating profit at Rs 302.84 crore, up 23 per cent, for fiscal 1998 against Rs 245.95 crore in fiscal 1997. Net profit jumped by 33 per cent to Rs 166.87 crore. The renewed enthusiasm in the Corporation Bank counter seems to have once again been led by institutions.
In the past six trading sessions, stocks like Bank of India, Oriental Bank of Commerce, Global Trust Bank, State Bank of Bikaner & Jaipur, State Bank of Travancore, IndusInd Bank and Federal Bank have also risen on the bourses. In fact, SBBJ, SBT, Dena Bank and Bank of India are currently trading at a much higher discount to their offer prices. This is despite the fact that these banks have posted impressive growth in net profits for fiscal 1998.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
