By Malvika Gurung
Investing.com — Shares of the private sector lender Federal Bank (NS:) surged over 8% and hit a fresh 52-week high of Rs 129.75 apiece on Monday. At the time of writing, the banking scrip traded 3.6% higher at Rs 123.85 apiece.
The private lender’s stock jumped after the bank denied in a media report, any speculations of it holding initial merger talks with the private sector lender Kotak Mahindra Bank (NS:).
A recent news report had suggested talks for a potential merger deal between Kotak Mahindra and Federal Bank.
Federal Bank informed in an exchange filing on Monday that the news report of a merger between the two banks is speculative in nature.
“In this regard, we would like to state that there is no information available with the Company as of today, which is required to be reported under extant SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and which may have a bearing on the stock price of the Company,” the exchange notice added.
Shares of the bank have surged about 42% so far in the year and are up almost 50% in the past year.