Shares of Kerala-based Dhanlaxmi Bank recovered by as much as 5% in afternoon trade today after the bank clarified its position on allegations leveled by the All-India Bank Officers' Confederation (AIBOC) over its financial health.
The bank said there is no reason for concern over its profitability, nor its asset quality.
"It (the bank) is no more a regional player. We are a pan-India player. There is no concern over profitability," Dhanlaxmi Bank Managing Director Amitabh Chaturvedi told reporters here.
Reacting to the development, shares of the lender— which closed with losses of nearly 10% yesterday— recovered by as much as 4.88% on the Bombay Stock Exchange and 4.48% on the National Stock Exchange to touch a high of Rs 67.60 and Rs 67.50, respectively.
The stock was heavily battered and touched a 52-week low of Rs 54.25, the biggest one-day fall since May, 2009, after AIBOC raised several questions about the lender's financial health yesterday.
At 1249 hours, the scrip was trading at Rs 66.60 on the BSE, up 3.34%, and at Rs 66.55 on the NSE, up 3.02%.
Yesterday, the bank's Chief Financial Officer Bipin Kabra had said, "The allegations are baseless and we do not know from where they have pulled out these numbers. None of these numbers match with our internal numbers."
The confederation yesterday demanded a comprehensive inquiry into the functioning of the management of the Kerala-based lender, which it alleged was marked by "extravagance and ineptitude".