PNB vaults after brokerage upgrade

Punjab National Bank advanced 3.83% to Rs 142.30 at 11:15 IST on BSE after a foreign brokerage firm reportedly upgraded the stock citing the risk-reward ratio turning favourable.

Meanwhile, the S&P BSE Sensex was up 154.78 points, or 0.5%, to 31,400.34

On the BSE, so far 7.01 lakh shares were traded in the counter, compared with average daily volumes of 10.41 lakh shares in the past one quarter. The stock had hit a high of Rs 142.75 and a low of Rs 139.75 so far during the day. The stock hit a 52-week high of Rs 185.65 on 5 May 2017. The stock hit a 52-week low of Rs 112 on 29 December 2016.

The stock had underperformed the market over the past one month till 5 July 2017, falling 8.27% compared with 0.18% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 9.39% as against Sensex's 4.40% rise. The scrip, however, outperformed the market in past one year, gaining 20.32% as against Sensex's 15.01% rise.

The large-cap state-run bank has equity capital of Rs 425.59 crore. Face value per share is Rs 2.

A foreign brokerage firm reportedly upgraded the Punjab National Bank (PNB) stock to buy from neutral citing the risk-reward ratio turning favourable and maintained its price target of Rs 180. The brokerage expects near-term provisioning to remain elevated and pressure on the bank's pre-provisioning operating profit to sustain. While subsidiaries continue to accrete value, systemic loan growth remains anaemic, the brokerage firm reportedly said.

PNB reported net profit of Rs 261.90 crore in Q4 March 2017 as compared with net loss of Rs 5367.14 crore in Q4 March 2016. Total income rose 18.31% to Rs 14989.33 crore in Q4 March 2017 over Q4 March 2016.

Government of India holds 65.01% stake in PNB (as on 31 March 2017).

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