Karnataka Bank has witnessed a sharp rise in share prices on Friday after the bank entered into a Memorandum of Understanding (Mou) with National Bulk Handling Corporation (NBHC) for extending storage facilities to farmers and finance against the warehouse receipts (WHR).

The finance to farmers will be extended under 'Krishik Bhandar' scheme of the Bank. NBHC has nominated Karnataka Bank as preferred financier for extending finance to farmers against the ware house receipts. Farmers can avail the service of NBHC with a nominal fee.

Shares of the bank gained Rs 2.6, or 2.04%, to trade at Rs 130.00. The total volume of shares traded was 189,179 at the BSE (1.16 p.m., Friday).

The scrip has touched an intra-day high of Rs 131.25 and low of Rs 127.40. The total volume of shares traded at the BSE is 189,179.