Punjab National Bank tumbled 8.98% to Rs 101.85 at 11:45 IST on BSE after the bank announced that quantum of reported unauthorized transactions can increase by around $204.25 million.
The announcement was made after market hours yesterday, 26 February 2018.Meanwhile, the S&P BSE Sensex was down 52.30 points, or 0.15% to 34,393.45.
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High volumes were witnessed on the counter. On the BSE, 50.39 lakh shares were traded in the counter so far compared with average daily volumes of 19.32 lakh shares in the past one quarter. The stock had hit a low of Rs 101.10 so far during the day, which is also a 52-week low for the stock. The stock had hit a high of Rs 107.80 in intraday trade. The stock had hit a 52-week high of Rs 231.60 on 26 October 2017.
The stock had underperformed the market over the past one month till 26 February 2018, tumbling 38.11% compared with the Sensex's 4.45% drop. The scrip had also underperformed the market in past one quarter, dropping 39.85% as against Sensex's 2.28% rise. The scrip had also underperformed the market in past one year, declining 20.3% as against Sensex's 19.22% rise.
The large-cap bank has equity capital of Rs 485.12 crore. Face value per share is Rs 2.
Additionally, the bank has clarified with regards to news report titled 'Govt may ask PNB to pay for fraud liabilities' that the bank has not received any such communication from Government. The bank is having enough capital/assets to pay for such liability in case of eventuality in accordance of law, it added.
PNB had announced on 14 February 2018, that it detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions, other banks appear to have advanced money to these customers abroad. In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions. The quantum of such transactions is $1771.69 million (approximately). The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land. The bank said it is committed to clean and transparent banking.
On 12 February 2018, based on investigation report, total fraud of Rs 11394.02 crore in case of unauthorized issuance of letters of undertakings, foreign letter of credits and inland letter of guarantees in the group accounts of Nirav Modi Group and Gitanjali Group and in the account of Chandri Paper & Allied Products was reported to RBI. On 13 February 2018, an FIR was filed with CBI against above 2 groups and Chandri Paper & Allied Products. On 13 February 2018, PNB filed a complaint to the Enforcement Directorate.
Punjab National Bank's net profit rose 11.1% to Rs 230.11 crore on 8% increase in total income to Rs 15257.50 crore in Q3 December 2017 over Q3 December 2016.
Government of India held 57.04% stake in PNB as per the shareholding pattern as on 31 December 2017.
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