Karnataka Bank gains after pact with NBHC

Karnataka Bank rose 2.04% to Rs 130 at 14:40 IST on BSE after the bank said it has entered into an MoU with National Bulk Handling Corporation for extending storage facilities to farmers and finance against the warehouse receipts.

The announcement was made during market hours today, 22 August 2014.

Meanwhile, the S&P BSE Sensex was up 66.92 points or 0.25% at 26,427.03.

On BSE, so far 2.15 lakh shares were traded in the counter as against average daily volume of 2.89 lakh shares in the past one quarter.

The stock hit a high of Rs 131.25 and a low of Rs 127.40 so far during the day. The stock had hit a 52-week high of Rs 150.75 on 26 May 2014. The stock had hit a 52-week low of Rs 71 on 21 August 2013.

The stock had underperformed the market over the past one month till 21 August 2014, sliding 7.55% compared with Sensex's 2.51% rise. The scrip had also underperformed the market in past one quarter, declining 11.53% as against Sensex's 8.49% rise.

The small-cap private sector bank has equity capital of Rs 188.41 crore. Face value per share is Rs 10.

Karnataka Bank said that the finance to farmers will be extended under "Krishik Bhandar" scheme of the bank. National Bulk Handling Corporation (NBHC) has nominated Karnataka Bank as preferred financier for extending finance to farmers against the ware house receipts. Farmers can avail the service of NBHC with a nominal fee, Karnataka Bank said in a statement.

Karnataka Bank's net profit jumped 29.2% to Rs 121.63 crore on 6.9% growth in total income to Rs 1287.31 crore in Q1 June 2014 over Q1 June 2013.

Karnataka Bank's four business segments include treasury operations, corporate and wholesale banking, retail banking and other banking operations.

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