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Karnataka Bank vaults as board approves QIP issue, bonus shares

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Capital Market
Last Updated : Jan 28 2020 | 2:50 PM IST

Karnataka Bank rose 2.89% to Rs 76.65 after the bank's board decided to issue bonus shares and raise capital funds through qualified institutions placement.

The board has recommended the issue of bonus shares in the proportion of one equity share for every 10 equity shares held by the shareholders.

The board also consented to create, offer, issue and allot equity shares to qualified institutional buyers (QIBs). The total number of equity shares to be issued shall not exceed 15 crore equity shares of the bank, it said. The announcement was made after market hours yesterday, 27 January 2020.

The stock fell over 33.92% in the past one year. On the technical front, the stock's RSI (relative strength index) stood at 58.481. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading above its 100-day moving average (DMA) placed at Rs 74.66, which will act as a support in the near term. Its 200 DMA placed at Rs 90.27, is set at to act as a resistance during the upcoming trading sessions.

Karnataka Bank's net profit fell 12.3% to Rs 123.14 crore on 11.4% rise in total income to Rs 2,023.68 crore in Q3 December 2019 over Q3 December 2018.

Karnataka Bank is engaged in providing a range of banking and financial services, including retail, corporate banking and para-banking activities in addition to treasury and foreign exchange business. It operates in four segments: treasury, corporate/wholesale banking, retail banking and other banking operations.

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First Published: Jan 28 2020 | 1:52 PM IST

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