Mumbai, Apr 12 (PTI) Karnataka Bank’s scrip ended nearly
3 per cent lower today after top private lender ICICI Bank
clarified that almost all shares held by it in the company
were on behalf of equity broker clients as security.
The clarification came a day after Karnataka Bank shares
soared by 9 per cent following its latest shareholding data
showing that ICICI Bank holds over 1 per cent stake in the
The stock had opened higher but it took a plunge
following clarification from ICICI Bank.
Shares of Karnataka Bank ended 2.61 per cent down at Rs
155.15 on BSE. Intra-day, the stock lost 4.73 per cent to Rs
At NSE, shares of the company went down by 2.66 per cent
to close at Rs 155.10.
On volume front, 14.70 lakh shares of the company were
traded on BSE and over one crore shares changed hands at NSE
during the day.
ICICI Bank shares were also down nearly 1 per cent to Rs
280.75 on BSE in an overall weak stock market.
In its latest shareholding pattern filed with the BSE on
Monday after market close, Karnataka Bank disclosed ICICI Bank
having 1.09 per cent stake in the company as on March 31.
The earlier quarter-end shareholding data, as on December 31,
2016, did not show any stake held by ICICI Bank.
This was seen by a section of the market as ICICI Bank
having picked up the stake in its smaller rival.
In a clarification, ICICI Bank spokesperson, however,
said in a statement that almost all these shares were held by
the bank on behalf of equity broker clients for exchange
clearing and settlement business.
“Some erroneous media reports have appeared that ICICI
Bank has acquired 1.09 per cent stake in Karnataka Bank. We
would like to clarify that almost all of these shares are held
by the Bank of behalf of its equity broker clients as a
security for our our exchange clearing and settlement
business,” the spokesperson added.
Karnataka Bank has often been the target of takeover
speculation, which it has always denied. There was no official
word from Karnataka Bank regarding the confusion over stake
held by ICICI Bank.
This is published unedited from the PTI feed.