Federal Bank edges up on merger buzz

DALAL STREET SPIKES

Federal Bank ended high on merger plans. The stock of the private sector bank was up following reports that the bank is looking for a merger with a south-based bank.

The stock as a result, ended 0.76 per cent higher to close at Rs 165.95, after hitting an intra-day high of Rs 170.85. More than 42 thousand shares changed hands on the counter today.

The stock has risen over 17 per cent from its recent low of Rs 142.40 on April 29 to today's close of Rs 165.95. ICICI Bank holds 20 per cent stake in the bank.

The bank has also proposed to raise Rs 350 crore either by way of a public offering or a global depository receipt (GDR) issue latest by September end.

The fund-raising is aimed at meeting the bank s growth plans for the next two years.