Punjab National Bank drops on weak Q1 results, rise in sticky loans

Punjab National Bank dropped 1.24% to Rs 131.10 at 14:30 IST on BSE after net profit slumped 57.49% to Rs 306.36 crore on 3.7% rise in total income to Rs 13930 crore in Q1 June 2016 over Q1 June 2015.

The result was announced during market hours today, 28 July 2016.

Meanwhile, the S&P BSE Sensex was up 105.43 points or 0.38% at 28,129.76.

High volumes were witnessed on the counter. On BSE, so far 59.31 lakh shares were traded in the counter as against average daily volume of 18.25 lakh shares in the past one quarter. The stock hit a high of Rs 136.40 and a low of Rs 129.70 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 27 July 2016, rising 27.4% compared with 6.14% rise in the Sensex. The scrip also outperformed the market in past one quarter, rising 47.34% as against Sensex's 7.52% rise.

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

On absolute basis, Punjab National Bank's gross non-performing assets rose to Rs 56654.09 crore as on 30 June 2016 from Rs 55818.33 crore as on 31 March 2016 and Rs 25397.42 crore as on 30 June 2015. Yes Bank's ratio of gross NPA to gross advances edged higher to 13.75% as on 30 June 2016 from 12.9% as on 31 March 2016 and 6.47% as on 30 June 2015. The ratio of net NPA to net advances rose to 9.16% as on 30 June 2016 from 8.61% as on 31 March 2016 and 4.05% as on 30 June 2015. Provisions and contingencies jumped 51.06% to Rs 2736.38 crore in Q1 June 2016 over Q1 June 2015.

Punjab National Bank also announced that the board of directors of the bank at its meeting held today, 28 July 2016, approved convening of Extra Ordinary General Meeting (EGM) of the shareholders of the bank on 31 August 2016 for approval of shareholders for issuance and allotment of such number of equity shares of face value of Rs 2 each to government of India on preferential basis at a price to be determined as on the relevant date aggregating Rs 2,112 crore. The relevant date for determination of the issue price is 29 July 2016.

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

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