Federal Bank pares gains as lender denies merger report; rises 9% intra-day

The news report of a merger between Federal Bank and another private bank is speculative in nature, the bank said

Shares of Federal Bank hit a record high of Rs 129.70 as they rallied 9 per cent on the BSE in Monday's intra-day trade amid heavy volumes. The spike in volumes came after reports emerged of the bank's merger with another private sector bank.

On its part, Federal Bank has denied the news report saying it is speculative in nature.

"We wish to clarify categorically that the news report of a merger between Federal Bank and another private bank is speculative in nature," Federal Bank said in exchange filing on clarification on news item appearing in media.