Srinagar: Jammu & Kashmir Bank rallied as much as 12 percent in intraday trade on Thursday, after its stock split in the ratio of 1:10 came into effect.
Bank shares closed at around Rs 168 on both BSE and NSE witnessing more than 6 percent intraday gain.
As per the approved sub-division, one equity share of the bank having a face value of Rs 10 would be split into ten equity shares of face value Re 1 each, J&K Bank said in a filing to the BSE.
The Board of Directors of the Bank in their meeting held on August 04, 2014 had fixed September 05, 2014 as the Record date for purpose of Sub Division of each Equity Share of the face value of Rs. 10/- into 10 (Ten) Equity Shares of Re. 1/- each, the company said in a release.
On Wednesday, the bank’s equity share of face value Rs 10/each ended at Rs 1,579.95 on the Bombay Stock Exchange. The stock opened at Rs 160 and hit an intra-day high of Rs 177 so far. Over 2.7 million shares were traded on both the stock exchanges.
Stock splits are intended to increase liquidity in a share as per share value reduces and attracts more retail investor.
The bank’s net profit slipped 57.8 per cent to Rs 130 crore in June quarter on huge provisions and lower net interest income. Profit in same quarter last year was Rs 307.9 crore.
Net interest income declined 2.6 per cent to Rs 637.7 crore in the quarter ended June 2014 from Rs 655 crore in corresponding quarter of last fiscal while other income shot up 42 percent year-on-year to Rs 130.99 crore during the quarter.