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Punjab National Bank gains over 8 per cent as RBI allows foreign investors to buy shares

Punjab National Bank (PNB) shares rise as Reserve Bank of India (RBI) lifts almost seven year old restriction on fresh purchase of shares of the PSU bank by foreign investors.

Punjab National Bank (PNB) shares
Gross non-performing assets (GNPA) of the bank more than doubled to 13.63% in July-September from 6.36% in the year ago quarter. (Express Photo)

Punjab National Bank (PNB) shares gained over 8 per cent on Monday after the Reserve Bank of India removed the public sector bank from the caution list and allowed foreign investors to buy its shares. The scrip later closed 8.21 per cent up at Rs 127.25.

The BSE group ‘A’ stock of face value Rs. 2 has touched a 52 week high of Rs 180.50 on Aug 17, 2015 and a 52 week low of Rs 69.40 on Feb 17, 2016.

The promoters holding in the company stood at 62.08 per cent while Institutions and Non-Institutions held 31.36 per cent and 6.55 per cent respectively.

Reserve Bank of India (RBI) has lifted the almost seven year old restriction on fresh purchase of shares of Punjab National Bank (PNB) by foreign investors. The central bank has notified that the aggregate foreign share holdings by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO)/Foreign Direct Investment (FDI)/American Depository Receipts (ADR)/Global Depository Receipts (GDR) under Portfolio Investment Scheme (PIS) in Punjab National Bank have gone below the prescribed threshold caution limit stipulated under the extant FDI policy. Accordingly, the restrictions placed on the purchase of shares of the bank are withdrawn with immediate effect.

The bank has reported a net loss of Rs 5367.14 crore for the quarter ended March 31, 2016 as compared to net profit of Rs 306.56 crore for the same quarter in the previous year on account of bad loans. Total income of the bank has decreased by 1.33% at Rs 13276.19 crore for quarter under review as compared to Rs 13455.65 crore for the quarter ended March 31, 2015.

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