Srinagar, Nov 20: Riding on the positive investors’ sentiment post-con call with its management, J&K Bank’s share price today shot up by around 20% to Rs 20.52 on Bombay Stock Exchange (BSE) and Rs 20.50 on National Stock Exchange (NSE). At both the stock exchanges, the bank’s share price closed yesterday at Rs 17.10 and opened today at Rs. 18.20.
It touched the upper circuit of 20% increase at BSE as the markets closed for the week. It also performed exceedingly well at the NSE securing an increase of 19.88% to end the day at Rs. 20.50 against the previous close of Rs. 17.10.
The market also saw a significant increase in terms of volumes of shares traded with as many as 2.91 crore of them transacted throughout the day.
The market analyst attributed the positivity around the market to the con-call by J&K Bank management led by its Chairman and Managing Director R K Chhibber with the investors. They also traced the surge to multiple reasons including increase in profits in back to back quarters, one-of-the-best NPA Coverage Ratio in the industry besides its better asset-quality.
“The bank has pocketed encouraging and satisfying profits in Q1 and Q2 of the current Financial Year despite the fact the businesses were hit by an unprecedented pandemic. The securing of handsome profits during the consecutive quarters, improving asset quality and other key financial indicators instilled confidence and positivity among the investors,” they said.
“The bank has dealt the challenges well by striking a right balance between its immediate requirements and future imperatives. Since the decks have already been cleared for raising the further capital of Rs 4500 Cr, the upward trend in the bank’s shares is likely to continue in near term”, he added.