Views of Mr. Jaikishan J Parmar (Research Analyst, Angel Broking):
"A large fraud to the tune of $1.7 billion (Rs.11,700 crore) was detected in one of the Mumbai branches of PNB. The stock tanked nearly 10% on Wednesday considering the magnitude of the scam which is nearly 1/3rd the market capitalization of PNB. The case pertains to some fraudulent and unauthorized transactions in one of its Mumbai branches.
The case assumes significance because based on these transactions other banks had advanced loans to these clients abroad. This is related to the 2 complaints that PNB has already filed against Mr. Nirav Modi, a prominent diamond merchant. PNB has also involved the Enforcement Directorate to track the audit trail of the money. This dampens the sentiments around PNB, which had seen a marginal improvement in its asset quality in this quarter."
Shares of PUNJAB NATIONAL BANK was last trading in BSE at Rs.125.65 as compared to the previous close of Rs. 128.35. The total number of shares traded during the day was 11728033 in over 52184 trades.
The stock hit an intraday high of Rs. 128.4 and intraday low of 120.6. The net turnover during the day was Rs. 1456436598.