PNB share rises 1.5% as bank receives $3.25 mn in recoveries

Share price of  Punjab National Bank gained 1.5% in Wednesday's trade after the lender informed the Ministry of Corporate Affairs (MCA) that it received Rs 24.33 crore ($3.25 million) as the first tranche of recoveries related to the Nirav Modi case.

"Punjab National Bank has informed the ministry of corporate affairs (MCA), which spearheaded the corporate governance litigation in a foreign jurisdictional court, that it has received $3.25 million (the equivalent of Rs 24.33 crore) as the first tranche of recoveries. Upon liquidation of the debtors' assets by the US Chapter 11 Trustee, a sum of $11.04 million (the equivalent of Rs 82.66 crore) is available for distribution to unsecured creditors, including PNB," MCA said in a release.

Following the update, shares of Punjab National Bank opened with a gain of 1.56% and touched an intraday high of Rs 35.75 on BSE against their earlier close of Rs 35.20, also its intraday low. Punjab National Bank stock has gained after 2 days of consecutive fall.

PNB stock price is trading higher than 5, 20, 50 and 100-day but lower than 200-day moving averages.

PNB shares have risen 3.5% in one week and 5.6% in a month's period. Market capitalisation of the lender stood at Rs 33,113 crore as of today's session.

Punjab National Bank has requested the MCA to support and join the bankruptcy proceedings in New York, USA in order to help the lender realise its claims on the debtors' assets. The lender reportedly expects another Rs 50 crore.

In a 26 July 2018 order, the US bankruptcy court of Southern District of New York recognised Punjab National Bank's claims in the proceeds of the sale of assets off the properties of the debtor companies. It also authorised the bank to issue subpoenas to compel the examination of Nirav Modi, Mihir Bhansali and Rakhi Bhansali under oath.

In the latest update, an Interpol global arrest warrant has been issued against Ami Modi, wife of prime accused Nirav Modi in the over $2 billion PNB bank fraud in a money laundering case.

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