Brickwork Ratings reaffirms ratings of Punjab National Bank
Brickwork Ratings reaffirms the ratings of 'BWR AA+' for Innovative Perpetual Debt Instrument amounting to Rs.200 Cr, withdraws(on redemption) the rating of Innovative Perpetual Debt Instrument of Rs.500 Cr and reaffirms the ratings of 'BWR AA' for Basel III Additional Tier I bonds amounting to Rs.5250 Cr of Punjab National Bank. The Rating is placed on Credit Watch with Developing Implications.
Brickwork Ratings (BWR) has reaffirmed the ratings and placed the ratings on Credit Watch with Developing Implications by removing the outlook of bond issues of Punjab National Bank as tabulated above. The reaffirmation continues to factor in the Government of India (GOI)'s support with equity stake of 75.41 %, improved earnings and visibility of net profits as of June 30, 2019, The Government of India (GOI) in August 2019 announced proposed amalgamation of 10 Public Sector Bank (PSBs) to form 4 PSBs wherein Oriental Bank of Commerce and United Bank of India is proposed to be amalgamated with Punjab National Bank. The Boards of the respective Banks have accorded their in-principle approval for the proposed amalgamation during September 2019. Brickwork Ratings has taken note and placed the ratings of bonds of these banks on Credit Watch with Developing Implications.
Shares of PUNJAB NATIONAL BANK was last trading in BSE at Rs.60.2 as compared to the previous close of Rs. 59.1. The total number of shares traded during the day was 1184426 in over 2843 trades.
The stock hit an intraday high of Rs. 60.7 and intraday low of 58.6. The net turnover during the day was Rs. 71119943.