Rupali Bank's share price has soared nearly 125 per cent or Tk 34 each within six months with the bank having no undisclosed price sensitive information (PSI).
Each share of Rupali Bank was traded at Tk 27.30 at Dhaka Stock Exchange (DSE) on June 22, which rose to Tk 61.30 on Wednesday.
However, the state-owned bank's non-performing loan, a barometer of its financial health, has been on the rise.
During the last one year, the bank's share price hovered between Tk 24.50 and Tk 74.90 each.
In the last two trading days - Monday and Tuesday - the bank's share price increased by more than 12 per cent or Tk 6.80 each. However, the share price fell 1.92 per cent on Wednesday.
Following the recent abnormal price hike in the bank's share, Chittagong Stock Exchange (CSE) served show-cause notice on the bank on Tuesday.
Regarding the upward trend in its share price and trading volume, Rupali Bank informed the CSE on Wednesday that they neither have taken any decision, nor there has been any development that could cause a surge in share prices of the bank.
"The bank's hefty net profit in the first six months of 2017 encouraged investors to buy its shares," said an analyst of a leading brokerage firm.
The bank reported consolidated profit of Tk 201.70 million in the first half of 2017, which was more than twice of the profit made during the same period last year.
The bank has reported consolidated earnings per share (EPS) of Tk 0.23 for July-September 2017, which was minus Tk 9.05 for July-September 2016.
In nine months, from January to September 2017 its consolidated EPS was Tk 0.90, as against minus Tk 7.96 for January-September 2016.
The bank, listed on DSE in 1986, disbursed 10 per cent stock dividend for the year ending on December 31, 2016.
Paid-up capital of the bank is Tk 7.0 billion and authorised capital is Tk 3.03 billion, while its total number of securities is 303.64 million.
The government owns 90.19 per cent stake in the bank, the institutional investors own 2.94 per cent, and the general people 6.87 per cent, according to DSE data as on November 30, 2017.
[email protected]
