PNB turns volatile after cutting interest rate on term deposits

Punjab National Bank rose 0.35% to Rs 159.60 at 13:07 IST on BSE after the bank said it has decided to reduce interest rates on domestic term deposits, NRE term deposits and PNB Tax Saver Fixed deposits with effect from 10 August 2015.

The announcement was made during market hours today, 6 August 2015.

Meanwhile, the S&P BSE Sensex was up 26.33 points or 0.09% at 28,249.41.

On BSE, so far 3.64 lakh shares were traded in the counter as against average daily volume of 7.69 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 0.81% at the day's high of Rs 160.35 so far during the day. The stock fell as much as 1.57% at the day's low of Rs 156.55 so far during the day. The stock had hit a 52-week high of Rs 231.50 on 19 December 2014. The stock had hit a 52-week low of Rs 129.65 on 16 June 2015.

The stock had outperformed the market over the past one month till 5 August 2015, surging 11.81% compared with Sensex's 0.46% rise. The scrip had, however, underperformed the market in past one quarter, sliding 4.16% as against Sensex's 2.85% rise.

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

The interest rate on domestic term deposits of less than Rs 1 crore in the maturity bucket of 1 year to 2 years was reduced to 8% from 8.1%, in the maturity bucket of above 2 years to 5 years will come to 7.75% from 8%, in the maturity bucket of above 5 years to 10 years will be reduced to 7.5% from 8%.

The interest rate on domestic term deposits of Rs 1 crore to Rs 10 crore in the maturity bucket of 7 to 45 days will be reduced to 4.5% from 5.5%, in the maturity bucket of 46 days to 90 days was slashed to 5.5% from 6.6%, in the maturity bucket of 91 to 179 days will come down to 6% from 6.75%, in the maturity bucket of 180 to 270 days will be reduced to 7% from 7.25%, in the maturity bucket of 271 days to less than 1 year will be slashed to 7% from 7.5%, in the maturity bucket of 1 year to 2 years will come down to 7.25% from 7.75% and in the maturity bucket of above 2 years to 10 years will come down to 7% from 7.5%.

Punjab National Bank's (PNB) 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 held 59.86% stake in PNB (as per the shareholding pattern as on 30 June 2015).

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