The Punjab National Bank stock closed at 11.93 loss, after posting a massive quarterly loss on Tuesday.
The stock was trading at a loss between 10 and 13%.
The stock was back up to 12.51% loss, as of 11:08 am after slightly easing to 11.63% loss as of 10:24 am after nearly sinking to 13%, at 09:52 am, hitting its two-year low of 12.57%. It later recovered by a percent to 11.98% loss, as of 11:44 am and then to a 10.12% loss, as of 1:30 pm.
The slight recovery, however, remained volatile and has been shortlived as of yet.
When the market opened, the stock was already trading at a loss of more than 8% and sunk nearly 10% in the opening trade, as of 09:20 am.
The stock dipped to 6% in trade, in the last few minutes of the previous session, right after it reported its quarterly earnings in which they had recorded a massive loss of more than Rs 13,000 crore.
PNB on Tuesday reported an
operational loss for the first time in its quarterly results, due to greater-than-expected slippages.
Rs 13,417 crore loss came in the same quarter the bank was hit by the $2 billion Nirav Modi scam.
The quarterly slippages — the accretion of fresh NPAs — was the highest ever at Rs 30,991 crore, a figure which is higher than the bank’s current market cap.
The non-performing assets rose to 18.38% this quarter compared to 12.11% in the previous quarter.
PNB’s asset quality deteriorated significantly as gross NPA (GNPA) in absolute value increased by 50.6% Q-o-Q to Rs 86,620 crore.
The Punjab National Bank (PNB) fraud case, which is now amounting to $2 billion, was siphoned from the bank through issuance of Letters of Undertaking (LoUs) to top jeweller Nirav Modi.
PNB bank officials, Nirav Modi and his accomplices were involved in the money laundering case.
The firm officials would approach the bank for LoUs, which are bank guarantees allowing customers to raise money from any other Indian bank’s foreign branch in the form of short-term credit.