PNB Gilts up 10% on robust growth outlook

MUMBAI: Shares of PNB Gilts were frozen in the highest tradeable limit for the session Monday, as investors are bullish on the company's prospects on expectations of further upsides in government bond prices. PNB Gilts, a wholly owned subsidiary of Punjab National Bank, is a primary dealer in the government bond market.

Analysts expect the company's earnings to grow over the next few quarters, as falling interest rates will boost prices of government bonds. In the third quarter, PNB Gilts' profit before tax doubled from the same period a year ago.

The primary dealer has been on the block for a while, but PNB has been unable to find a buyer because the valuations quoted was considered steep. Brokers feel, with the outlook for this business turning positive, PNB may be able to find a buyer for the company.

PNB Gilt shares were locked at the 10% upper circuit at Rs22.80.