PNB slumps after Fitch downgrades the bank's Viability Rating by one notch

Punjab National Bank tanked 7.18% to Rs 134.45 at 14:40 IST on BSE after global rating agency Fitch downgraded the bank's Viability Rating by one notch, citing growing risk to the bank's capital position from its mounting stressed assets.

Meanwhile, the S&P BSE Sensex was down 651.07 points or 2.48% at 25,632.02.

On BSE, so far 8.28 lakh shares were traded in the counter as against average daily volume of 6.34 lakh shares in the past one quarter.

The stock hit a high of Rs 143.70 and a low of Rs 133.50 so far during the day. The stock had hit a 52-week low of Rs 129.65 on 16 June 2015. The stock had hit a 52-week high of Rs 231.50 on 19 December 2014.

The stock had outperformed the market over the past one month till 31 August 2015, sliding 4.01% compared with Sensex's 6.51% fall. The scrip had, however, underperformed the market in past one quarter, declining 5.57% as against Sensex's 5.55% fall.

The large-cap public sector bank has equity capital of Rs 370.91 crore. Face value per share is Rs 2.

Fitch Ratings has cut PNB's Viability Rating (VR) by one notch to 'bb'. Fitch believes that PNB's recovery could prove to be more protracted than other similar-sized peers because of large stressed assets.

PNB's net profit declined 48.7% to Rs 720.71 crore on 4.7% growth in total income to Rs 13432.05 crore in Q1 June 2015 over Q1 June 2014.

The Government of India holds 59.86% stake in PNB (as per the shareholding pattern as on 30 June 2015).

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