Punjab National Bank (PNB) shares gained 2.5 per cent on Friday to close at Rs. 136 from the previous day's gain of Rs. 132.80. Since, India's central bank permitted more foreign investment into the state owned lender on July 8, the shares have risen by 13.3 per cent from a low of Rs. 120.
At present, India's second largest lender has promoters holding 62.08 percent and Institutional and Non-Institutional investors holding 31.36 per cent and 6.55 per cent respectively, reported Financial Express.
The Bank's share had rallied up over the past week with the news of its home finance subsidiary announcing its Rs. 2500 crore initial public offering (IPO) of equity shares. PNB holds 51 per cent in PNB Housing Finance Ltd.
However, a report in Economic Times warned that despite coming off the hook from RBI's seven year blockade on foreign investment and its subsidiary filing public listing on Indian bourses, PNB will still have more streamlining to be done within.
PNB's loss for the March 2016 quarter was Rs. 5,367 crore as against a net profit of Rs. 306 crore seen in same quarter last year. The bank's quarterly loss was the largest ever posted by any public sector bank. In the same peirod, the bank's overall income decreased by 1.33 per cent to Rs. 13,276 crore as compared to Rs. 13,455.65 crore.
The state-run bank's net NPAs increased 131 percent to Rs. 35,423 crore at the end of 2015-16 from Rs. 15,396 crore a year ago. As a percentage of total advances, net NPAs stood at 8.61 per cent, up from 4.06 percent as on March 31, 2016.