PNB edges higher on fund raising plans

NEW DELHI: Shares of Punjab National Bank (PNB) climbed over 1 per cent to Rs 83.15 in Thursday's session after the bank said it was planning to raise funds by selling non-core assets and a rights issue.

The public lender is looking to raise Rs 10,000 crore in 2019-20 from sale of non-core assets, rights issue and expected write-backs from two large accounts undergoing insolvency proceedings.

The lender is expecting a write-back of Rs 4,000 crore from Essar Steel and Bhushan Power and Steel which are undergoing resolution under the Insolvency and Bankruptcy Code.


The bank posted Rs 4,750 crore loss for the quarter ending March 2019. Dalal Street appeared disappointed with the numbers, as most brokerages came out with a negative outlook.

Morgan Stanley maintained an underweight view on the stock, with a price target of Rs 75 per share, highlighting that the bank's asset quality remains weak.

The shares of the company pared gains and closed 0.49 per cent lower at Rs 81.50 on BSE.