Punjab National Bank dropped 1.99% to Rs 133.30 at 12:25 IST on BSE after the bank announced that it has reduced marginal cost of funds based lending rate with effect from 1 January 2017.
The announcement was made on Sunday, 1 January 2017.Meanwhile, the S&P BSE Sensex was down 116.55 points or 0.44% at 26,509.91.
On the BSE, 5.1 lakh shares were traded in the counter so far as against average daily volume of 11.91 lakh shares in the past one quarter. The stock had hit a high of Rs 117.45 and a low of Rs 113.30 so far during the day. The stock had hit a 52-week high of Rs 164.30 on 11 November 2016. The stock had hit a 52-week low of Rs 69.40 on 17 February 2016.
The stock had underperformed the market over the past one month till 30 December 2016, sliding 16.35% compared with 0.1% drop in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 17.81% as against Sensex's 4.45% fall.
The large-cap public sector bank has equity capital of Rs 425.59 crore. Face value per share is Rs 2.
Punjab National Bank has reduced marginal cost of funds based lending rate (MCLR) for overnight loans to 8.2% from 8.9%. The rate for one month is reduced to 8.25% from 8.95% and for three months it is reduced to 8.35% from 9.05%.
The MCLR on 6-month loans will be 8.4% from earlier 9.1% and for one-year loans the rate will be 8.45% from 9.15%, the bank said. MCLR on three-year loans was reduced to 8.6% from 9.3% and for five-year loans the rate will be 8.75% from 9.45% earlier.
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All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.
Punjab National Bank (PNB)'s net profit declined 11.5% to Rs 549.36 crore on 3.8% growth in total income to Rs 14218.27 crore in Q2 September 2016 over Q2 September 2015.
The Government of India held 65.01% stake in PNB (as per the shareholding pattern as on 30 September 2016).
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