Foreign portfolio investors cut stake in Punjab National Bank to 9.14%

Lazard Emerging Markets Equity, which is the biggest share holder in the public sector bank, cut its stake to 1.95% from 2.21%.

CHENNAI: Foreign portfolio investors have cut their holdings in Punjab National Bank to 9.14% as of March 2018, when compared to 12.56% in the December quarter.

According to the latest share holding pattern on the stock exchanges, Lazard Emerging Markets Equity, which is the biggest share holder in the public sector bank, cut its stake to 1.95% from 2.21%.

Earlier this year, Punjab National Bank was hit with the Nirav Modi loan fraud, which shook the entire banking industry.

In April, Fitch Ratings had downgraded the Viability Rating of Punjab National Bank to 'bb-' from 'bb', and has maintained the rating on Rating Watch Negative (RWN). Fitch said it was uncertain whether the PNB management would be able to address the fraud quickly due to the involvement of various investigative agencies.

However, the PNB chief had said that all the issues would be resolved in six months.

The promoter holding in PNB increased to 62.25% in March 2018 from 57.04% in December 2017, thanks to the capital infusion from the government.