Shares of L&T Finance Holdings and Federal Bank have rallied about 5% each on back of heavy volumes on the counter.
L&T Finance Holdings has gain nearly 5% for the fifth day in a row and locked in upper circuit at Rs 92.25 on the BSE. A combined 2.77 million shares have already changed hands on the counter and there are pending buy orders for 743,952 shares on both the exchanges.
Federal Bank too, surged over 6% at Rs 512, also its record high on the BSE. The stock opened at Rs 487 and has seen a total 895,711 shares have changed hands on the counter till noon deals.
On November 27, L&T Finance Holdings, the financial services arm of the engineering conglomerate Larsen & Toubro, had sold its entire 4.67% stake or 7.99 million shares in private sector lender Federal Bank for about Rs 363 crore.
HSBC Global Investment Funds had picked up part or 1.43 million shares of the private sector bank for Rs 453.65 apiece, the BSE data shows.
Analyst at ICICI Securities remain positive on Federal Bank saying that after consolidating for three years, the bank has seen a pick-up in credit growth with adequate NPA (non performing assets) provisions.
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“Going forward, with Capital adequacy ratio (CAR) at 15.5%, pressure on loan growth will be lower with NIM of around 3.5%. Owing to adequate provisions, the NNPA ratio is expected merely at 0.6%,” analyst said in recent research report.