Kerela based financial sector player, Dhanlaxmi Bank, recovered by almost 55 after a 20% slump post halting the operations of the banking concern on order of the All-India Bank Officers’ Confederation (AIBOC). The clarification provided by the bank says that the primary concern is the profitability of the concern and not the asset liability mismatch as it had been understood.
The managing director of the bank stated the same in his statement to the media and also mentioned that profitability becomes a concern for firms that become national players from being plain regional operators.The reaction to the announcement of AIBOC was so strong that the bank reached a new 52 week low yesterday at Rs. 54.25 a stock. That was possibly the biggest day fall for the stock since May. However the gain on the BSE recorded today was about 4.88% and that on the NSE was about 4.48% post clarifications. The stock price stood at Rs.67.60 as per t5he latest recorded data.
The CFO of Dhanlaxmi bank states that the allegations and assumptions made by the AIOBC were baseless as none of the data matched with that of the bank’s internal data.The confederation reacted to this by demanding a detailed investigation report of the management of Dhanlaxmi Bank as they had pointed fingers towards the management as being overindulgent and incompetent.
‘Bell the Bull’ says that the fundamentals of the stock look bumpy while yesterday’s fall has brought down all kinds of moving averages under technical analysis to which today’s rise has little impact. The best decision is not to buy at slumps.