PNB gains after board OKs stock split

Punjab National Bank rose 1.32% to Rs 989.75 at 10:17 IST on BSE after the bank said its board approved 5-for-1 stock split.

Meanwhile, the BSE Sensex was down 105.13 points, or 0.39%, to 26,985.29.

On BSE, so far 29,000 shares were traded in the counter, compared with an average volume of 1.12 lakh shares in the past one quarter.

The stock hit a high of Rs 991.80 and a low of Rs 976.50 so far during the day. The stock hit a 52-week high of Rs 1,068 on 26 May 2014. The stock hit a 52-week low of Rs 458.20 on 1 October 2013.

The stock had outperformed the market over the past one month till 19 September 2014, rising 4.28% compared with 2.53% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 0.89% as against Sensex's 7.49% rise.

The large-cap company has an equity capital of Rs 362.07 crore. Face value per share is Rs 10.

The board of Punjab National Bank approved splitting each equity shares of face value Rs 10 each into five equity shares of face value of Rs 2 each.

The board also approved exploring avenues for raising capital through qualified institutional placement (QIP)/follow-on public offer (FPO)/rights issue.

Further, the board considered raising Basel III compliant additional Tier-I capital bonds.

Punjab National Bank's net profit rose 10.2% to Rs 1405.12 crore on 9.2% rise in total income to Rs 12825.13 crore in Q1 June 2014 over Q1 June 2013.

Government of India holds 58.87% in the bank as at 30 June 2014.

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