- Banking stock may further go up to ₹130 apiece levels, believe stock market experts
Stock market today: Shares of Suryoday Small Finance Bank has risen after the newsbreak of transfer of bad loans including written off loans to Asset Reconstruction Company (ARC). Suryoday Small Finance Bank share price today opened upside and went on to climb to its intraday high of ₹107.45 on NSE, logging around 7.50 per cent in early morning deals on Monday session.
According to stock market experts, the small finance banking stock is rising due to the recent exchange filing by the bank where it has informed Indian bourses that its board of directors has agreed to transfer its stressed loan portfolio (Financial Assets), including written-off loans to ARC. They said that the stock has bounced back from its consolidation phased and may go up to ₹125 to ₹130 apiece levels. They advised investors to buy the stock and keep on accumulating till it is above ₹90 apiece levels.
Speaking on the reason for rise in Suryoday Small Finance Bank share price, Ravi Singhal, CEO at GCL Securities said, “the small finance banking stock is rising as its board of directors has agreed to transfer its bad loans to the ARC. This is expected to boost margins of the bank in upcoming quarters leading to buzz about the banking stock. Apart from this, the banking segment is already in buzz due to hawkish interest rate regime. So, market is expecting strong quarterly numbers from the bank in near term.”
Advising positional investors to buy this banking stocks now, Sumeet Bagadia, Executive Director at Choice Broking said, “Bounce back in the stock looks possible after correction in the scrip last week. The stock has strong support base at ₹90 and one can buy6 the scrip at current levels maintaining stop loss at ₹90 for short term target of ₹125 to ₹130 levels.” He advised Suryoday Small Finance Bank shareholders to further hold the scrip maintaining trailing stop loss at ₹90 apiece levels.
In its exchange filing, Suryoday Small Finance Bank said, “Pursuant to the applicable provisions of the SEBI Listing Regulations, we would like to inform that basis the approval of the Board of Directors of the Bank, for transfer of stressed loan portfolio (Financial Assets), including written-off loans to Asset Reconstruction Company (“ARC”), the Bank has received a binding bid from an ARC, amounting to Rs.135.10 Crores, on Security Receipt consideration basis, for the NPA and technically written-off portfolio with outstanding of Rs. 492.05 Crores.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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