Karnataka Bank zooms 50% in one month on buyout buzz

ICICI Bank has submitted a formal proposal to the RBI to acquire Karnataka Bank at Rs 240 per share, report

Karnataka Bank is trading higher by 2% at Rs 123 on back of heavy volumes. A combined 7.49 million shares have already changed hands on the counter so far against an average around 5.33 million shares that were traded daily in past two weeks.

The scrip opened at Rs 126 and hit a 52-week high of Rs 127 on the Bombay Stock Exchange (BSE). The stock of private sector bank has rallied 50% in past one month from Rs 82 on September 14, compared to 1.5% rise in the benchmark index Sensex. The banking sector index Bankex has gained around 8% during the same period.

According to media reports ICICI Bank, the country’s largest private sector bank has submitted a formal proposal to the Reserve Bank of India (RBI) to acquire Karnataka Bank at Rs 240 per share.