Stock Market

PNB Housing Finance pips parent PNB in terms of m-cap

   Download Android App    Share in      FullScreen   CheckVideos

PNB Housing Finance dethroned its fraud-hit parent Punjab National Bank (PNB) in terms of market capitalisation for the first time ever on Wednesday.

The m-cap of PNB Housing Finance stood at Rs 21,265.20 crore on May 16 compared with PNB’s Rs 20,856.10 crore. Shares of Punjab National Bank plunged over 12 per cent on Wednesday after the company posted a loss of Rs 13,416.91 crore for January-March, the biggest ever by any Indian lender. The bank's stock tanked 12.15 per cent to end at Rs 75.55 on Wednesday.

Intraday, it slumped 13.60 per cent to Rs 74.30 -- its 52-week low level. Falling share price of PNB dragged its market capitalisation below its housing finance arm. Shares of PNB have been witnessing tremendous selling pressure ever since Nirav Modi fraud came into light.

On a year-to-date basis, shares of the lender have cracked over 55 per cent till date.

PNB’s market capitalisation on January 1 was at Rs 41,174.30 crore, while PNB Housing Finance m-cap was at Rs 22,173.50 crore on the same date. The CBI on Monday filed a chargesheet against Allahabad Bank MD and CEO Usha Ananthasubramanian and 21 others, including 11 bank officials, in the over Rs 13,000-crore Punjab National Bank fraud case in which diamantaire Nirav Modi and his uncle Mehul Choksi were allegedly involved.

Ananthasubramanian was earlier with the PNB. Brokerage firm Nomura downgraded PNB shares to 'reduce' with a target price of Rs 75 from Rs 115 earlier.

"Q4FY18 loss of Rs 13,400 crore and FY19 loss estimate of Rs 8,000 crore could lead to a spiral of capital-raising at low multiples," the global brokerage house said. Earlier this month, PNB Housing Finance posted an increase of 44 per cent in profit for the quarter ended March.

According to the company, the profit during the quarter under review increased to Rs 219.2 crore from Rs 152.4 crore reported for the corresponding period of previous year. Besides, the housing finance firm's Net Interest Income (NII) registered a growth of 36 per cent to Rs 451.8 crore from Rs 332.7 crore. Brokerage firm Nirmal Bang Securities has ‘Buy’ rating on PNB Housing Finance with a target price of Rs 1,634.

Motilal Oswal is also bullish on PNB Housing with a target price of Rs 1,750.




Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021

Buy Our Merchandise (Peace Series)

 

Contribute US to Start Broadcasting


It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm

STRIPE

Details
Category: Stock Market


21