Karnataka Bank slips after ICICI Bank clarifies stock exposure

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Karnataka Bank slips after ICICI Bank clarifies stock exposure

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

company.

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

151.75.

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.