PNB gains as RBI lifts restrictions on foreign purchases

Punjab National Bank rose 2.55% to Rs 120.60 at 9:25 IST on BSE after the Reserve Bank of India notified that the restrictions placed on the purchase of shares of the bank by foreign investors were withdrawn with immediate effect.

Meanwhile, the S&P BSE Sensex was up 400.65 points or 1.48% at 27,527.55.

On BSE, so far 3.32 lakh shares were traded in the counter as against average daily volume of 14.85 lakh shares in the past one quarter. The stock hit a high of Rs 122.05 and a low of Rs 119.90 so far during the day. The stock had hit a 52-week high of Rs 180.50 on 17 August 2015. The stock had hit a 52-week low of Rs 69.40 on 17 February 2016. The stock had outperformed the market over the past one month till 8 July 2016, surging 45.63% compared with Sensex's 0.39% rise. The scrip had also outperformed the market in past one quarter, advancing 44.21% as against Sensex's 9.94% rise.

The large-cap public sector bank has equity capital of Rs 392.72 crore. Face value per share is Rs 2.

The Reserve Bank of India (RBI) notified on Friday, 8 July 2016 that the aggregate foreign share holding 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 PNB has gone below the prescribed threshold caution limit stipulated under the extant FDI policy. Hence, the restrictions placed on the purchase of shares of PNB are withdrawn with immediate effect.

PNB reported net loss of Rs 5367.14 crore in Q4 March 2016 compared with net profit of Rs 306.56 crore in Q4 March 2015. Total income declined 1.3% to Rs 13276.19 crore in Q4 March 2016 over Q4 March 2015.

The Government of India held 62.08% stake in PNB (as per the shareholding pattern as on 30 June 2016).

Powered by Capital Market - Live News