PNB share price gains over 4% on better earnings, capital raising plan

Punjab National Bank (PNB) share price gained in afternoon session today after the lender said it plans to hit capital markets in the fourth quarter this fiscal to raise funds. PNB share price rose up to 4.5% to Rs 36 against previous close of Rs 34.45 on BSE. The large cap share trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages. However, PNB share has lost 53.44% during last one year and declined 44.29% since the beginning of this year.

In a month, the share has gained 34.52%. The share has risen 8% in four days.

At 2:37 pm, the stock was trading 4% higher at Rs 35.80. Market cap of the lender rose to Rs 33,690 crore. Total 50 lakh shares changed hands amounting to turnover of Rs 17.70 crore.

Currently, the bank is sufficiently capitalised with the capital adequacy ratio of 14.14 per cent at the end of March 2020, PNB Managing Director S S Mallikarjuna Rao said. "However, we will finalise the opening balance sheet of amalgamated entities in the next board meeting in July. Probably, then the bank will get an actual estimate of the capital (requirement)," he said.

"We will be planning (capital raising) somewhere around end of third quarter or beginning of fourth quarter. By this time we would have declared two quarterly balance sheet of the amalgamated entities," he said.

Besides, he said, the bank has a lot of headroom available in terms of AT 1 and Tier II bonds.

PNB plans to hit capital markets in fourth quarter to raise funds

For Q4,  net loss narrowed to Rs 697.20 crore against loss of Rs 4,750 crore in the corresponding period of 2018-19. However, after a gap of two years, the Nirav Modi fraud-hit bank posted profit of Rs 363.34 crore in 2019-20 compared with net loss of Rs 9,975 crore in the previous fiscal.

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