PNB stocks slump for second straight day after fraud shock; Plunges almost 12 pc

Shares of PNB on Thursday continued to drop for a second straight day by closing almost 12% lower after a USD 1.8 billion fraud was detected in one of its branches in Mumbai.

The trading volumes in PNB shares spiked remarkably high level. At the closing on Thursday’s trades, more than 19.4 crore shares exchanged hands on NSE and BSE counters with about 17.7 crore shares on NSE alone.

Stocks of jewellery companies such as Gitanjali Gems and PC Jewellers too declined after authorities blamed billionaire diamond trader Nirav Modi for the fraud.

Stocks of Gitanjali Gems plummeted almost 20 percent, while Stocks of PC Jewellers fell 5.31 percent on the BSE.

On Thursday, PNB shares lost about 12.89 percent to conclude at 127.05 on NSE while the shares settled 11.97 percent down at Rs 128.35 on BSE.

PNB sells entire stake in Principal Financial Group JV

Punjab National Bank (PNB) has sold its whole stake in the JV with Principal Financial Group to give full ownership of Principal PNB AMC and Principal Trustee Co. Pvt. Ltd in India. The Principal Financial Group would purchase PNB’s minority stakes in their joint ventures.  The agreement is depending on regulatory approval.

According to the website of PNB, the second largest public sector bank by market cap, it holds 21.38% in Principal PNB Asset Management Co. and 30% in Principal Trustee.

Principal PNB Asset Management Co. is the investment manager to Principal Mutual Fund.

Shares of PNB was trading at Rs.167.85 up 0.87% at NSE, mid-noon hours, Wednesday