Karnataka Bank slips after ICICI Bank clarifies stock exposure

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.