BackPNB loses Rs11,000 crore market cap in 5 days, shares recover marginally
Punjab National Bank's market capitalization has slumped by Rs10,939 crore in five days, nearly equal to the Rs11,384 crore fraud at the bank
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New Delhi: Punjab National Bank’s market valuation has slumped by Rs10,939 crore in five days, which is nearly equal to the massive Rs11,384 crore fraud at the company, even as the stock made a marginal recovery on Tuesday. The stock had dropped in the previous four trading sessions.
In the past one week, the stock has lost nearly 28%.
PNB’s market valuation fell by Rs10,938.78 crore to Rs28,270.22 crore today from Rs39,209 crore on 12 February.
The company’s scrip meanwhile staged a marginal recovery today ending 0.13% higher at Rs116.55 on BSE. During the day, the stock lost nearly 5% to hit a one year low of Rs111.
As per the BSE shareholding pattern data, the government owns 57.04% stake in PNB and with the fall in stock price, it has lost Rs6,274.4 crore. Life Insurance Corporation of India which has 13.93% stake has lost Rs1,532.3 crore. Foreign portfolio investors (FPIs) with 12.56% stake has seen an erosion of Rs1,381.6 crore and small investors about Rs387 crore.
On Wednesday last week, PNB said it detected a fraud in which diamond merchant Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from one its branches for overseas credit from other Indian lenders, and is being probed by CBI and Enforcement Directorate among other agencies.
International rating agencies Moodys Investor Service and Fitch Ratings today warned the scam-hit Punjab National Bank (PNB) of rating downgrades, citing likely networth erosion and widening losses at the second largest state-run lender.
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