Shares of Andhra Bank
shrugged off the recent weakness and surged nearly 10% to a high of
Rs39.50 on bargain buying amid relief over the bank's limited exposure
to Sterling group companies.
The stock also tracked gains in most state-owned banking shares after India's headline inflation dropped to a four-month low in February, easing concerns of a rate hike in the near future.
On Monday, the stock had closed nearly 7% lower on reports that the Enforcement Directorate filed a prosecution complaint against former director Anup Prakash Garg in a Rs5,000cr bank fraud case involving Sterling Biotech Ltd. However, late on Monday, the bank clarified it has fund- and non-fund based exposure of only Rs1,150cr in this regard and the exposure to the group companies had already been classified as non-performing assets since March 2015.
The stock also tracked gains in most state-owned banking shares after India's headline inflation dropped to a four-month low in February, easing concerns of a rate hike in the near future.
On Monday, the stock had closed nearly 7% lower on reports that the Enforcement Directorate filed a prosecution complaint against former director Anup Prakash Garg in a Rs5,000cr bank fraud case involving Sterling Biotech Ltd. However, late on Monday, the bank clarified it has fund- and non-fund based exposure of only Rs1,150cr in this regard and the exposure to the group companies had already been classified as non-performing assets since March 2015.
Andhra Bank is currently trading at Rs38.55 up by Rs2.7 or 7.53% from its previous closing of Rs35.85 on the BSE.
The scrip opened at Rs35.50 and has touched a high and low of Rs39.55
and Rs35 respectively. So far 2,10,28,151(NSE+BSE) shares were traded on
the counter. The current market cap of the company is Rs3,128.99cr.
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