JAMMU, Apr 29: The share of State owned lender JK Bank has crossed its 52 week high and is maintaining the level backed by heavy volume.
The shares of the Bank closed at Rs 62.80, after touching an intraday high of 65.40 during the last trading session.
The bank which is promoted by the Government of Jammu and Kashmir is the only listed company of the J&K State and is traded on NSE and BSE. As per the data available with exchange, as much as 31 lakh shares changed hands over the counter as compared to two-week average of 5 to 7 lakh shares on the NSE.
Foreign institutional investors and foreign portfolio investors also over the past year evinced keen interest in the shares of the Bank and increased the number of shares held by them.
The stock, however, is still trading at a 50% discount to the book value and has sufficient room for growth to catch up with its private sector peers and is finding favor with the retail & institutional investors alike who are betting on good returns in the near term anticipating good Q4 numbers.
Stock analysts have been bullish on the bank since its turnaround on the back of superior liability franchise, efficient management of J&K state restructured portfolio, increase in market share and credit growth in J&K state along with support from the state government in the past which is viewed as a source of comfort by the investors.