Shares of Bandhan Bank and Gruh Finance were trading lower by up to 4% on BSE after these companies denied the merger report.
Bandhan Bank has dipped 4% to Rs 507, extending its past three days 7% decline on BSE. The stock had strong run-up and rallied 22% in five days, from Rs 469 on December 11, to Rs 570 on December 18, after the Kolkata-based private sector lender received prior approval from the Reserve Bank of India (RBI) to open new branches.
“Bandhan Bank evaluates various opportunities on a continuous basis and the Bank, as a matter of policy, does not comment on market speculation. If and when any proposal warranting such disclosure, the Bank will do the same as required under the SEBI regulations,” the bank said on clarification on news item “Bandhan bank in talks with HDFC for control of Gruh Finance” from CNBCTV18 dated 21st December 2018.
“In this connection, we would like to state that as a business strategy, the company regularly explores various business opportunities for the sale of its loan assets and other feasible modes of organic and inorganic growth; however, there is no decision taken by the Board of Directors of the company,” Gruh Finance said on clarification of news report.
The stock of Gruh Finance was down 2% to Rs 323 on BSE in the intra-day trade, after it rallied 10% in the past three trading days.
Source: Business-Standard