The shares of Punjab National Bank (NS:) (PNB) climbed 9.44% on Friday’s early trades to reach a fresh 52-week high of ₹ 55.65. They took the winning run to the eighth straight session. The stock rose. In the past eight days, it has gained 25.62%.
The bank on Friday received DIPAM’s approval (the government’s divestment arm) to divest its stake in UTI Asset Management Company in single or multiple tranches. PNB owned a 15.22 per cent stake in UTI Asset Management Company as of September 30 and it is valued at ~ ₹ 1394 crores.
PNB in a BSE filing said that the value of divestment and the price at which the shares will be divested are yet to be decided. Currently, the State Bank of India (NS:), Life Insurance Corporation (NS:) of India, Bank of Baroda (NS:) and Punjab National Bank collectively hold 45.16 per cent of the shares of UTI AMC.
In another development, CARE Ratings (NS:) has revised the outlook for the bank’s AT-1, Tier II bonds and Infrastructure bonds from ‘Stable’ to ‘Positive’.
“The ‘Positive’ outlook reflects CARE Ratings’ expectation of improvement in profitability and asset quality parameters in the medium term along with comfortable capitalisation by the bank. In the last two years ended March 31, 2022, and H1FY23, the bank witnessed a significant reduction in both, GNPA and NNPA. CARE Ratings expects the same to continue going forward,” CARE Ratings said.
The rating agency added that PNB has seen improvement in the capitalization levels with a significant cushion over the regulatory requirement.
PNB’s shares were trading at ₹ 54.20 apiece at 12:46 PM on Friday. Brokerage firm Sharekhan has a buy rating on the stock with a target price of ₹ 64. This implies an upside of 18.08% as compared to its share price.
Written by Simran Bafna
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