Fraud-hit Punjab National Bank loses Rs 11,000 cr in market capitalisation in 5 days
Punjab National Bank's market valuation has slumped by Rs 10,939 crore in five days, which is nearly equal to the massive Rs 11,384-crore fraud at the company, even as the stock made a marginal recovery on Tuesday
New Delhi: Punjab National Bank's market valuation has slumped by Rs 10,939 crore in five days, which is nearly equal to the massive Rs 11,384-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 percent.
PNB's market valuation fell by Rs 10,938.78 crore to Rs 28,270.22 crore on Tuesday from Rs 39,209 crore on 12 February.
The company's scrip meanwhile staged a marginal recovery on Tuesday ending 0.13 percent higher at Rs 116.55 on BSE. During the day, the stock lost nearly 5 percent to hit a one year low of Rs 111.
As per the BSE shareholding pattern data, the government owns 57.04 percent stake in PNB and with the fall in stock price, it has lost Rs 6,274.4 crore. Life Insurance Corporation of India which has 13.93 percent stake has lost Rs 1,532.3 crore. Foreign portfolio investors (FPIs) with 12.56 percent stake has seen an erosion of Rs 1,381.6 crore and small investors about Rs 387 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 on Tuesday 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.