Stock Watch

State-owned Punjab National Bank is reported to have unveiled a festival offer under the name 'PNB Festival Bonanza Offer 2010'. The festival offer will run from August 20 till December 31, 2010.

Under the special offers, home loans can be availed at an attractive 8.5% rate. PNB is tagged to be the first bank that has launched loans at discounted rate including both home loans and car loans, marking the opening of the festive fervor.

Punjab National Bank (PNB), one of the leading state run public sector bank, said on Wednesday that it is going to buy stake in its joint venture partner, Principal Financial Group.

Principal and PNB had joined hands to be part of the life insurance and insurance broking business. Now, the bank is going to buy 26 per cent stake from its Mauritius-based firm.

The other 25 per cent will be bought by the bank from its partner in the insurance broking business, Berger Paints.

Punjab National Bank the public sector bank has proposed to buy over stake in the JSC Dana Bank according to the MD K R Kamath. PNB which is planning to buy 64% stake in the Kazakhstan bank will spend over $24 millions or Rs. 111.30 Crore for the stake in the Kazak banks. The bank is likely to increase their funds for the needed expansion plans are trying to raise $100 million for the move.

The Punjab National Bank post a 31 percent growth in March 2010 quarter, a 79 basis point improvement in net interest margin and 21 percent growth in advances helped. It may be noted that most of the banks aim at a NIM of 3 percent, such a level of NIM is a feat in Indian banking industry. Only HDFC Bank has consistently shown a NIM of 4 percent or more, among large banks. The bank has continued its robust performance, on the operations side though.

State-run banking major Punjab National Bank (PNB) has entered into an agreement with T. Rowe Price Global Investment Services Ltd for the sale of shares held by the bank in UTI Asset Management Company Ltd and UTI Trustee Company Pvt. Ltd.

Accordingly, the lender will sell 81.25 lakh shares of UTI AMC at Rs 200 per piece  (aggregating Rs 162.50 crore) and 6500 shares of UTI Trustee at Rs 11.92 each share (aggregating Rs 77,500) to T. Rowe Price, which together comes to 6.5%.

Punjab National Bank, having its representative office at Almaty in Kazakhstan, may acquire a bank in the country in line with its plans to expand its presence in the overseas market.

The acquisition would further boost bilateral trade between India and Kazakhstan which currently stands at $5.5 billion.

Punjab National Bank Executive Director Nagesh Pydah said, “There is lot of opportunity in Kazakhstan. A high level delegation has visited the place and it is very much on our radar for acquisitions.”

Country's second largest public sector lender Punjab National Bank (PNB) has entered into an agreement with MITCON Consultancy Services Limited (MITCON) for co-operation in the area of carbon credit business.     

Under the agreement, PNB will provide banking related services while MITCON will provide services related to identification of project, its registration with the Clean Development Mechanism Executive Board and recurring verifications.

Principal PNB Asset Management Company has launched its closed-ended debt scheme christened Principal PNB Fixed Maturity Plan 385 Days--Series VIII in the Indian market.

The duration of the fund will be for 385 days from the date of allotment, July 8 and it will invest in debt and money market instruments.  

The fund will have an investment plan with two investment options--growth and dividend options and the dividend option will have the facility of payout and sweep.

Punjab National Bank (PNB), the country’s third largest lender, has announced that the bank will be raising Rs500 crores (With option to retain over subscription) as PNB Upper Tier II Bonds Issue Series III through private placement.

The proposed date of opening of the issue will be 29.02.2008 and proposed date of closing will 03.03.2008.

Recently, bank has reduced its benchmark prime-lending rate (BPLR) from existing level of 13% p.a. to 12.50% p.a. The revised rates will come into effect from March 1.

After studying the performance of the stock, Mr. Ashwani Gujral has advised the investors to buy PNB with the stop loss of Rs 640 to achieve the short term target of Rs 850.

The stock touched a high of 714 after falling to a low of 695 intraday. Stock opened today at Rs 705 while the previous closure marked at Rs 701.60 on NSE. Company is currently trading at PE of 9.81 and EPS of 71.06 per share.

Company has recorded over 9% up in the net profit of Rs 1540 Crores last year as against the Rs 1410 crores for the same period a year ago.