PNB up 8 pc as RBI allows foreign investors to buy shares

Stocks of Punjab National Bank surged over 8 per cent today after the Reserve Bank of India (RBI) lifted almost seven-year old restriction on purchase of shares of the state-owned bank by foreign investors.
The stock zoomed 8.21 per cent to settle at Rs 127.25 on BSE. During the day, it gained 9.26 per cent to Rs 128.50.
At NSE, the stock jumped 8.24 per cent to settle at Rs 127.30.
On the volume front, 34.16 lakh shares of the bank changed hands on BSE and over two crore shares were traded on NSE during the day.
RBI on Friday notified that the aggregate foreign share holdings by foreign institutional investors/NRIs /PIOs/FDI and others under Portfolio Investment Scheme (PIS) in PNB have gone below the prescribed threshold caution limit stipulated under the extant FDI policy.

"Hence, the restrictions placed on the purchase of shares of the above company vide press release dated May 22, 2009 have been withdrawn with immediate effect," the central bank said.
Reeling under bad loans, PNB posted the largest quarterly loss by any public sector lender at Rs 5,367 crore for the fourth quarter ended March 31, 2016.