Punjab National Bank dropped 1.80% to Rs 396 at 10:16 IST on BSE after the bank said on Saturday, 28 June 2008 it has raised its benchmark prime lending rates by 50 basis to 13% per annum with effect from 1 July 2008.
The bank made this announcement on Saturday, 28 June 2008.
Meanwhile, the BSE Sensex was down 22.81 points, or 0.17%, to 13,779.41.
On BSE, 10,531 shares were traded in the counter. The scrip had an average daily volume of 1.51 lakh shares in the past one quarter.
The stock hit a 52-week low of Rs 395.20 in the counter so far during the day. The stock hit a high of Rs 406 so far during the day. The stock had a 52-week high of Rs 721 on 3 January 2008.
The mid-cap bank stock had underperformed the market over the past one month till 27 June 2008, declining 19.46% compared to the Sensex’s decline of 15.41%. It had also underperformed the market in the past one quarter, declining 23.60% compared to Sensex’s decline of 15.69%.
The bank has an equity capital of Rs 315.30 crore. Face value per share is Rs 10.
The current price of Rs 396 discounts its Q4 March 2008 annualised EPS of Rs 68.98, by a PE multiple of 5.74.
The bank has also increased interest rates by 50 basis points on housing loans, car loans and personal loans. It also decided to increase its deposit rates ranging from 25 basis points to 50 basis points in some of the time slabs.
Punjab National Bank (PNB) raised lending rates after the Reserve Bank of India (RBI) gave a strong signal that interest rates in the economy are headed north when it on Tuesday, 24 June 2008, raised repo and cash reserve ratio (CRR) by 50 basis points each on control over 11% inflation.
The double-stroke anti-inflationary measures are expected to tighten the liquidity in the system, as the CRR hike would suck out around Rs 16,000 crore. CRR is the proportion of deposits mobilised by banks and parked with the RBI for statutory requirement. Banks do not earn any interest on the cash reserves. Repo rate is the rate at which RBI lends money to banks.
PNB’s net profit rose 128.8% to Rs 543.76 crore on 19% increase in operating income to Rs 4417 crore in Q4 March 2008 over Q4 March 2007.
The state-run bank provides treasury and banking operations. The activities include accepting deposits, lending loans and to provide other financial related services.
Monday, June 30, 2008
Tuesday, June 24, 2008
PNB to walk out of Principal fund JV
Punjab National Bank (PNB) has decided to exit Principal Asset Management Company.
"They were not performing at all, so we have decided to sever all ties with them," PNB Chairman and Managing Director K C Chakrabarty said today. Both the entities are currently negotiating the exit price.
"We are negotiating the exit price, which will be at par with the shareholding. Hopefully, it will be settled soon," Chakrabarty said. PNB Principal AMC is a joint venture between the Principal Group, PNB, Vijaya Bank and Berger Paints.
Under the JV, the Delhi-headquartered bank holds a 30 per cent stake, the Principal Group has a 26 per cent shareholding, Berger Paints 25 per cent and the remaining 19 per cent is with Vijaya Bank.
The second largest public sector bank is set to start its credit card business by October.
"We have roped in Visa as the facilitating partner. Initially, it will be available for the existing customers of the bank and in the first year, we are targeting 1-2 lakh cards," he told Business Standard during a visit to Chakla, around 60 km from Kolkata.
The visit was a part of the spot assessment of the implementation of the debt waiver scheme, announced in the Union Budget 2008-09. For the bank, the total outstanding farm loan is estimated at around Rs 18,000 crore.
"They were not performing at all, so we have decided to sever all ties with them," PNB Chairman and Managing Director K C Chakrabarty said today. Both the entities are currently negotiating the exit price.
"We are negotiating the exit price, which will be at par with the shareholding. Hopefully, it will be settled soon," Chakrabarty said. PNB Principal AMC is a joint venture between the Principal Group, PNB, Vijaya Bank and Berger Paints.
Under the JV, the Delhi-headquartered bank holds a 30 per cent stake, the Principal Group has a 26 per cent shareholding, Berger Paints 25 per cent and the remaining 19 per cent is with Vijaya Bank.
The second largest public sector bank is set to start its credit card business by October.
"We have roped in Visa as the facilitating partner. Initially, it will be available for the existing customers of the bank and in the first year, we are targeting 1-2 lakh cards," he told Business Standard during a visit to Chakla, around 60 km from Kolkata.
The visit was a part of the spot assessment of the implementation of the debt waiver scheme, announced in the Union Budget 2008-09. For the bank, the total outstanding farm loan is estimated at around Rs 18,000 crore.
Tuesday, June 17, 2008
PNB to start credit card business soon
State-owned Punjab National Bank (PNB) is likely to launch its credit card business in the second-half of this fiscal and would enter into an agreement with Visa or Mastercard for the venture, a top bank official said.
"We expect the credit card business to get operational in a period of six months and would tie-up with Visa or Mastercard for the business. We have finalized the business strategy for the proposed card business, PNBs Executive Director," J M Garg, told reporters on the sidelines of a seminar here today.
PNB also has plans to divest around 26 per cent stake in its subsidiary, PNB Gilts, sometime this fiscal and is in talks with a few potential players, Garg said.
We are looking at a better pricing for the deal and are engaged in talks with a few players. I expect to close the deal sometime in the present fiscal when market conditions are conducive for that (the deal), he said.
On its overseas operations, Garg said that the bank plans to set up a subsidiary in Canada and a representative office in Singapore besides upgrading its existing representative office in Dubai.
"We expect the credit card business to get operational in a period of six months and would tie-up with Visa or Mastercard for the business. We have finalized the business strategy for the proposed card business, PNBs Executive Director," J M Garg, told reporters on the sidelines of a seminar here today.
PNB also has plans to divest around 26 per cent stake in its subsidiary, PNB Gilts, sometime this fiscal and is in talks with a few potential players, Garg said.
We are looking at a better pricing for the deal and are engaged in talks with a few players. I expect to close the deal sometime in the present fiscal when market conditions are conducive for that (the deal), he said.
On its overseas operations, Garg said that the bank plans to set up a subsidiary in Canada and a representative office in Singapore besides upgrading its existing representative office in Dubai.
Wednesday, June 4, 2008
PNB hikes interest rates on non-resident deposits
Punjab National Bank on Tuesday announced hike in interest rate on Foreign Currency Non-Resident (B) deposit schemes for dollar, British pound and euro with effect from June 1.
The interest rate on US dollar deposits has been raised to 2.41 per cent for a maturity of one year from 2.33 per cent. For the maturity of 2-3 years, the rate is revised to 2.71 per cent against 2.43 per cent, PNB said in a release.
For tenure of 3-4 years, the interest rate has been increased to to 3.06 per cent from 2.70 per cent and on 4-5 years term deposit the new rate is at 3.30 per cent and the fixed deposit for five years it is 3.47 per cent.
On NRE Term deposits, the applicable rate of interest for June is 3.16 per cent for maturities of one year to less than two years compared to 3.08 per cent last month and 3.46 per cent for maturity in between 2-3 years, it said.
The interest rate is pegged at 3.81 per cent for the maturity of 3-5 years against 3.45 per cent earlier, it added.
The interest rate on US dollar deposits has been raised to 2.41 per cent for a maturity of one year from 2.33 per cent. For the maturity of 2-3 years, the rate is revised to 2.71 per cent against 2.43 per cent, PNB said in a release.
For tenure of 3-4 years, the interest rate has been increased to to 3.06 per cent from 2.70 per cent and on 4-5 years term deposit the new rate is at 3.30 per cent and the fixed deposit for five years it is 3.47 per cent.
On NRE Term deposits, the applicable rate of interest for June is 3.16 per cent for maturities of one year to less than two years compared to 3.08 per cent last month and 3.46 per cent for maturity in between 2-3 years, it said.
The interest rate is pegged at 3.81 per cent for the maturity of 3-5 years against 3.45 per cent earlier, it added.
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