PNB falls for 5th straight day; wipes off $1.86 bn in market value

Reuters

PNB stock has lost about 30 per cent of its value since the lender disclosed the fraud.

Feb 20

Shares of state-run lender Punjab National Bank fell as much as 4.7 per cent to Rs 111, lowest since July 2016. It was fifth straight day of losses for PNB after disclosing a $1.8-billion fraud, wiping off Rs 12,000 crore ($1.86 billion) in market value.

The stock has lost about 30 per cent of its value since the lender disclosed the fraud. Federal police had arrested three more PNB employees on Monday in the fraud probe.

“The nature of the alleged scam reduces our confidence level in the bank, and PSUs (public sector undertakings) in general,” Nomura analysts wrote in a note.

Nomura estimates PNB’s capital requirement to increase by Rs 5,000-10,000 crore ($776.1 million - $1.55 billion), assuming a write-off of Rs 7,000-13,000 crore over the alleged fraud.

Nifty PSU bank index fell for seventh day, down 1.2 per cent.

Published on February 20, 2018
TOPICS
stocks and shares
Punjab National Bank

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