May 24, 2024

To this point this yr, the inventory of this state-owned lender surged over 68 %, rising to the highest performer within the Financial institution Nifty index

Punjab Nationwide Financial institution (PNB) shares gained 1 % to Rs 96 per share on December 29 after the financial institution’s board cleared a proposal to boost Rs 7,500 crore from a professional institutional placement (QIP) or FPO.

To this point this yr, the inventory of this PSU Financial institution surged over 68 %, making it the highest performer within the Financial institution Nifty index. The PNB shares hit a 52-week excessive of Rs 97 on December 28, 2023.

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The fundraising train might be performed in a number of tranches within the subsequent monetary yr, in accordance with the alternate submitting. “The board of administrators, throughout a gathering on December 28, accepted the proposal for elevating fairness capital for an quantity aggregating as much as Rs 7,500 crore in a number of tranches throughout 2024-25 via Certified Institutional Placement (QIP) or Observe-on Public Providing (FPO) or some other permitted mode or a mix,” the submitting learn.

Additionally learn: PSU banks set for re-rating, Motilal Oswal raises goal costs for SBI, PNB, BoB

Analysts at Sharekhan count on PNB’s quick enchancment in asset high quality and robust outlook to assist in sooner normalisation of credit score price, thereby enhancing the visibility for enchancment in return ratios. The brokerage agency retained a ‘purchase’ name on PNB, with a goal worth of Rs 105 per share.

“The financial institution has been guiding that high quality of loans sanctioned/disbursed in post-Covid instances is way superior with very low delinquency. Thus, decrease slippages tendencies is prone to maintain and slim the perceived hole in underwriting with respect to friends,” Sharekhan stated in an earlier be aware.

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