Shares of Punjab National Bank extended its losses on Monday plunging for the fourth straight session dropping nearly 7% to hit a new 52-week low as the biggest banking fraud of Rs 11,400 crore at India’s second largest PSU bank PNB unrolls. Punjab National Bank has been adversely impacted by the scam involving the fake LOUs between alleged diamond merchant Nirav Modi and the bank. The stock of Punjab National Bank plummeted for the fourth straight day on Monday shedding nearly 7% to hit a fresh 52-week low on the counters in the morning deals. Shares of scam-hit PNB tumbled as much as 6.84% to a new 52-week low of Rs 117.05 on NSE.
A massive trading volume was witnessed in the shares of Punjab National Bank on the fourth straight day, as at 11:46 am, more than 6.1 crore shares of PNB exchanged hands on both NSE and BSE with about 5.67 crore shares on NSE alone. Following the four-day slump in the share price of PNB, the market capitalisation of Punjab National Bank has taken a huge jolt. At the fresh 52-week low price of Rs 117.1, PNB held a market capitalisation of Rs 28,391.56 crore on BSE. An Extraordinary General Meeting has also been scheduled for 16 March 2018 at 10 am, Punjab National Bank said in an exchange filing.
Earlier on Saturday, CRISIL placed six of Punjab National Bank’s bond issues under ‘watch’ as the implications of the largest banking scam of Rs 11,400 crore has been developing day after day. Stock exchanges have sought clarification from Punjab National Bank on the news report, “Govt. asks fraud-hit Punjab National Bank to conduct forensic audits”, to which PNB has replied, “since our bank has not received any instruction from any investigating/Govt. authority, we at present cannot comment on media reports,” according to a regulatory filing.
Meanwhile today, Indian stock markets fell into negative territory in the morning deals after starting on a positive note with the S&P BSE Sensex diving as many as 220.84 points to hit the day’s low of 33,789.92 whereas NSE Nifty slipped below 10,400-mark to a day’s low of 10,379.05. All the sectoral and broader market indices of National Stock Exchange traded in the red with Nifty Midcap 50, Nifty Sml100 Free, Nifty Media, Nifty Metal, Nifty PSU Bank, and Nifty Realty facing the major brunt.