PNB stock tanks 8% post results; m-cap down Rs 2,760 cr

PNB shares tumbled over 8 per cent, wiping-out Rs 2,760 crore from its market valuation today, after the company posted a marginal 2.5 per cent increase in net profit for the third quarter ended December 31.
Investors were also disappointed by the asset quality of Punjab National Bank.
The PNB scrip plunged 7.94 per cent to settle at Rs 176.75 on the BSE. During the day, it lost 8.56 per cent to Rs 175.55.
On the NSE, it tanked 8.32 per cent to close the day at Rs 175.85.
PNB's market value fell by Rs 2,760.07 crore to Rs 31,997.93 crore.

In terms of volume, 37.15 lakh shares of the company changed hands at the BSE and over 2 crore shares were traded at the NSE during the day.

"PNB reported poor set of numbers for the quarter, affected by asset quality challenges," said Vaibhav Agrawal VP Research - Banking, Angel Broking.
PNB today posted net profit of Rs 774.56 crore for the October-December quarter on account of higher provisioning for bad loans.
The country's second largest public sector bank by assets had reported net profit of Rs 755.41 crore for the third quarter of the 2013-14 financial year.
As far as PNB's asset quality is concerned, gross NPAs as a percentage to total advances rose to 5.97 per cent from 4.96 per cent in the same quarter an year ago.

Its net NPAs went up to 3.82 per cent from 2.80 per cent at the end of December 2013, PNB said in a statement.
Gross NPA in absolute terms rose to Rs 22,211.43 crore as compared to Rs 16,595.84 crore at the end of December 2013.