Stocks

PNB shares nosedive 8.3% on weak results

BL Internet Desk Aug 7 | Updated on August 07, 2018 Published on August 07, 2018

PNB has reported a net loss of Rs 940 crore for the first quarter ended June 30, 2018.

Shares of India's second-biggest state-run lender Punjab National Bank fell as much as 8.3 per cent to Rs 82.60 on weak results.

After opening the session at Rs 90.25 against the previous close of Rs 90.05, the stock touched intraday high of Rs 91.55 and a low of Rs 82.60.

PNB has reported a net loss of Rs 940 crore for the first quarter ended June 30, 2018. This net loss was much lower than the net loss of Rs 13,417 crore recorded in the March quarter. In the first quarter last fiscal, it had recorded a net profit of Rs 343 crore.

The bottomline for the quarter under review was impacted by sharp rise in provisioning for bad debts, including the provisioning for Nirav Modi fraud.

Total income of the bank for the quarter under review grew to Rs 15,072 crore (Rs 12,946 crore). Operating profit for the first quarter ended June 30,2018 stood at Rs 4,195 crore (Rs 3,217 crore).

As of last close, PNB shares were down 40.4 per cent year-to-date, underperforming a 10.1 per cent decline in the Nifty PSU bank index. Punjab National trades at 0.59 forward price to book value, State Bank of India 1.20x, Union Bank of India 0.42x, and Bank of India 0.46x.

(With inputs from Reuters)

Published on August 07, 2018
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