PNB sheds Rs 81 bn in market value in 2 days; stock falls 12% on Thursday

PNB, India's second-largest state-owned lender after State Bank of India (SBI), is now valued at just Rs 311 billion

Shares of state-owned Punjab National Bank (PNB) dropped 12 per cent on Thursday to Rs 128.4. The lender, in the epicentre of a $1.77-billion scam, has seen a market capitalisation erosion of Rs 81 billion in two days. Its stock has shed 21 per cent — its worst two-day decline since May 2004.

Besides the government,  which holds 57 per cent stake in the bank, Life Insurance Corporation of India (LIC) holds nearly 14 per cent stake. It has affected other institutional investors like HDFC Mutual Fund and Lazard Emerging Markets. Small investors hold nearly 4 per cent stake in