The Hindu Business Line : Allahabad Bank turns weak

After sanctions slapped by the Japanese authority on Sampo, a proposed partner of Allahabad Bank in a four-way insurance joint venture, sentiment over the counter dampened.

The stock has lost 12 per cent in the last one week and 21 per cent in the last one month on the apprehension that the insurance foray may turnout to be a non-starter.

According to dealers, a set of investors has been exiting the stock. However, some market insiders said that fresh entries have also begun of late on value opportunity.

Market sources said that high trading volume (two-week average on BSE is 4.88 lakh shares) was indicative of emergence of new interest at lower levels.

According to analysts, the bank's strategic plan - under implementation - encompassing total computerisation, branch network extensions and HR restructuring, is likely to help it achieve the projected business growth rate of 27 per cent.

The stock closed the day down two per cent at Rs 56.35 on the BSE with a traded volume of 2.58 lakh shares.

Jayanta Mallick

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