Mumbai, July 27: The Global Trust Bank (GTB) shares plunged to an intra-day low of 10 paise on the National Stock Exchange (NSE) as shareholders rushed to recover whatever they could a day after the bank’s merger with Oriental Bank of Commerce was announced.

The centre of attention on bourses, the stock fell freely from the start of trading amid huge volumes. It saw record number of deals in which 1.43 crore shares changed hands.

The market regulator had decided on Monday to put the Global Trust shares in the trade-to-trade segment of the Bombay Stock Exchange (BSE) and NSE. This allowed a free-fall that would not have been possible under the normal T+2 cycle, where declines are limited to 20 per cent. The share finally closed on the NSE at Rs 3.25, a whopping loss of 69.19 per cent from Monday’s Rs 10.55.

Dalal Street was less harsh, pounding the stock to an intra-day low of Rs 1.50 and a close of Rs 3.36. Around 80.05 lakh shares were traded.

At 10 paise apiece, transaction charges like brokerage and demat fees would have been more than the value of the shares. Speculators who bought the shares at this rate must have made a killing, a dealer said. However, few deals were struck at that price, he added.

The closing price of the share indicates that some investors still harbour the hope of Oriental Bank granting some value to GTB shares. It is highly unlikely though as Oriental Bank is not getting the bank for a song, dealers said. The PSU bank with no bad loans will have to provide for the huge non-performing assets on the books of Global Trust.

Fitch outlook

Fitch Ratings said developments pertaining to Global Trust would not affect the Indian banking system and the financial condition of most banks is good. Their ratings could improve in the coming months.

“Any damage from the failure of GTB is unlikely to affect the banking system, even as its depositors and creditors may face temporary problems,” the rating agency said.