Share prices of Punjab National Bank (PNB) surged 4.55% on Tuesday after the country’s second-largest public sector lender reported a net profit of Rs 261.9 crore for the three months to March 2017. The stock gained 4.55% to close at Rs 174.55 on BSE. During the day, it surged 6.58% to Rs 177.95. On NSE, shares of the company went up by 4.4% to end at Rs 174.15. The company’s market valuation also rose by Rs 1,617.69 crore to Rs 37,143.69 crore. The PNB stock was the biggest gainer in the S&P BSE Bankex index, which gained by Rs 7.60 from its previous close of Rs 166.95.
The S&P BSE Bankex Index surged 0.51% and closed the session at 26,059.27 points. The stock gained approximately Rs 1,651.17 crore in market capitalisation, according to Bloomberg data. The intra-day high for the stock was Rs 177.95. PNB had reported a loss of Rs 5,367.14 crore in corresponding quarter a year ago. The bank said that it reported a net profit this time due to lower provisions, higher net interest and other income.
Of the 48 brokerages who track the stock, nearly half have given it a ‘sell’ rating, while the remaining 27% and 23% have given it a ‘buy’ and ‘hold’ respectively. Trading volumes on the counter surged as 5.74 crore shares changed hands compared with an average of 1.04 crore shares traded daily in the three months.
Total income increased to Rs 14,989.33 crore in the quarter, from Rs 12,669.21 crore in the same period last year. Net interest income (NII) for the quarter stood at Rs 3,683 crore and gross non-performing assets as a percentage of gross advances eased to 12.53% in the quarter ended March, from the earlier 12.9%.