Punjab National Bank slumps over 22% in seven days

Punjab National Bank (PNB) tumbled 4.48% to Rs 31.95, extending losses for seventh consecutive session.

The stock has declined by 22.55% in seven days from its recent closing high of Rs 41.25 on 14 December 2020.

Last week, PNB garnered Rs 3,788.03 crore by issuing 106,70,52,910 equity shares at Rs 35.50 each to the eligible qualified institutional buyers. The issue opened on 15 December 2020 and closed on 18 December 2020. The bank had planned to raise Rs 7,000 crore through QIP route.

The government-backed lender allotted 42.25 crore shares (representing 39.60% of the total issue size) to the Life Insurance Corporation of India (LIC). As on 30 September 2020, LIC held 39.45 crore shares or 4.19% stake in the bank.

Concurrently, PNB also allotted 21.23 crore shares (representing 19.90% of the total issue size) to Societe Generale.

PNB intends to utilize the net proceeds towards augmenting the bank's tier I capital to meet the Basel III and to support growth plans and to enhance the business of the bank and for general corporate requirements or any other purposes.

PNB is a public sector bank. The Government of India held 85.59% stake in the bank as on 30 September 2020.

The bank's net profit surged 22.4% to Rs 620.81 crore in Q2 September 2020 from Rs 507 crore recorded in Q2 September 2019. Total income during the quarter grew by 50.7% YoY to Rs 23,438 crore.

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