Jammu & Kashmir Bank had closed yesterday at Rs.37.50 and today, it opened higher at Rs.42.80 before going on to hit the 20% UC at Rs.45 and it remains the top gainer on the BSE currently.
The Bank has become the first apparent gainer of the 370 scrapping. Currently, the state Govt holds 59.23% stake in the Bank and with the state now becoming a Union Territory, the central Govt could become the majority shareholder – thus from a private sector bank it could become a PSU bank over the next six months.
The bank which has been facing allegations of terror funding and deteriorating asset quality, with this change expected to happen is being cornered by those hopeful of the bank turning around. There are already talks of the Govt infusing funds to strengthen the bank.