Private bank stock prices on fire

 More than 500,000 shares of the bank were traded on the Bombay Stock Exchange and 1.44 million shares on the National Stock Exchange.

 There was huge buying interest in other private bank stocks, too, on hopes that they could also be taken over by foreign banks.

 The price of the Global Trust Bank scrip was up 18.43 per cent at Rs 25.70, United Western Bank 9.14 per cent at Rs 30.45, IndusInd Bank 8.48 per cent at Rs 40.30, South Indian Bank 7.19 per cent at Rs 70.10, Centurion Bank 6.88 per cent at Rs 14.13 and the Bank of Rajasthan 7.53 per cent at Rs 32.85.

 Bigger banks such as ICICI Bank and HDFC Bank, too, saw their share prices going up on institutional buying. ICICI Bank was up 8.78 per cent at Rs 287.50 and HDFC Bank 3.28 per cent at Rs 328.70.

 Late last night, HSBC announced that it would buy the entire 20 per cent stake of CDC Capital Partners in UTI Bank at over Rs 90 per share.

 HSBC is also slated to make an open offer for an additional 20 per cent stake in the bank, as per Securities and Exchange Board of India regulations.

 According to market players, despite the open offer price being below the current market price, many marketmen are accumulating the stock on hopes that the investment by HSBC will shore up UTI Bank's performance. Hence the buying at such high levels.

 Most market players expect the government to raise the foreign direct investment limit in private banks to 74 per cent from 49 per cent during the winter session of Parliament.

 The government is also likely to allow proportionate voting rights in foreign and private sector banks. As of now, voting rights are limited to 10 per cent, regardless of the shareholder's stake in a private bank.