Shares of Indian Bank rose 4% to a more than four-year high of Rs 322.5 per share in heavy volume in intraday trade on Tuesday. The stock traded at its highest level since September 2018 and hit an all-time high of Rs 428 in November 2017.

Shares of the state-owned bank have soared 12% over the past two sessions, while the S&P BSE Sensex fell nearly 1%.

The average trading volume on the NSE and BSE nearly tripled, with about 3.2 million shares changing hands as of 11:09 am.

Since March 2022, Indian Bank has more than doubled or 110% in market value from Rs 153.80 on buying by foreign institutional investors (FIIs). Foreign investors increased their stakes in the bank for the fourth straight quarter. FPIs doubled or increased their stake in Indian banks by 2.5 percentage points to 4.2% by the end of the March 2023 quarter. The ownership data model shows they held a 1.7% stake in PSU Bank by the end of the March 2022 quarter.

Meanwhile, regarding CASA, Indian banks benefited the most from the merger with east-India-based Allahabad Bank, accounting for 40% among peers. However, CASA is under pressure from most banks due to the cannibalisation of TD and competition from NSS (National Savings Scheme) and other alternative investments.