Punjab National Bank falls; CMD demits office

Reuters Market Eye - Punjab National Bank falls 1.5 percent.

K. R. Kamath, chairman and managing director, demits office with effect from Oct. 28.

Kamath's exit upsets investors who were expecting an extension for him, say traders.

A new head at state-run banks generally leads to a clean up in the first few quarters which means higher restructuring charges, say some dealers.

India decided late Monday to draw up a new process to appoint top officials at state-run banks.

(Reporting by Abhishek Vishnoi)