PNB loses m-cap worth Rs 87.31-bn after shares slump for third session

Punjab National Bank (PNB) has lost market capitalisation (m-cap) worth Rs 87.31 billion after shares of the company slumped for the third straight session following the detection of a Rs 11,400-crore fraud.

At the end of today's trading session, the shares of the company fell 2.10 per cent to Rs 125.65 apiece. The stock had slumped 6.03 per cent intraday to its 52-week low of Rs 120.60.

Following the downtrend, m-cap of the company slumped by Rs 6.5 billion to Rs 304.7 billion.

In the last three trading sessions, the company m-cap saw a total erosion of Rs 8,731.5 crore. This is more than 6-times of the company's full-year net profit of Rs 1,324 crore recorded in FY 2016-17.

The quantum of fraud itself is more than 8-times the bank's annual profit.

The stock hit its 52-week low on both BSE and NSE today.

Meanwhile, shares of PNB Housing settled in the positive territory at Rs 1,210.00 up 0.92 per cent. The stock had slipped 2.25 per cent to a low of Rs 1,172 during the session.

On Wednesday, PNB said it has detected a fraud, in which diamond jewellery designer 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.

PNB has already suspended 10 officers and referred the matter to CBI for investigation.

Today, PNB said it has suspended eight more officials, including one at general manager level for their suspected involvement in the multi-crore scam.