The UTI Bank counter witnessed active trading today as investors mopped up large quantities of the stock. The demand was both from institutional investors and the retail segment.
The scrip went up by more than six per cent to end at Rs 39.40 after touching an intra-day low of Rs 36.85. The share opened at Rs 37.90 and touched a high of Rs 39.90 during the day. More than 26,000 shares were traded on the Bombay Stock Exchange.
According to dealers, most of the trades were value-based buying. "This counter does not witness too much speculative activity," they said.
Last week UTI Bank had bought Rs 400 crore worth loan assets of ICICI, taking its assets size close to the Rs 2,000 crore mark. The market is seeing this as a positive development for the bank.
"This is a good way of increasing the bank's asset base without going for any acquisitions," said an analyst.
Though UTI Bank has not really grown in the same way as its counterparts -- HDFC Bank and ICICI Bank -- it is being seen as a steady performer which will give value to investors in the long-term.
Recently the bank had made a preferential allotment of shares to the Life Insurance Corporation and the General Insurance Company.
Last year UTI Bank had sold 26 per cent of its stake to two Mauritius-based funds.
