PNB drops out of top-100 most valued stocks

Punjab National Bank (PNB) is no longer in the list of India’s top-100 most valued companies/banks in terms of market capitalisation (market-cap) after a stock price of the bank declined 31% in past one week.
In the backdrop of discovered some fraudulent and unauthorized transactions amounting to Rs 114 billion ($1.8 billion) last week, the public sector lender market-cap stood at Rs 272 billion on Tuesday at 11:55 am, which put it in the 108th position, the BSE data shows.In past five trading days, PNB has saw a market-cap erosion of Rs 120 billion from Rs 392 billion as on February 12, 2018.
The bank stood at 74th position in overall market-cap ranking has lost 34 positions during the period. PNB had market-cap of Rs 416 billion at the beginning of the current calendar year 2018.The stock hit a fresh 52-week low of Rs 111 on BSE in intra-day trade today, declined 31% from Rs 162 on February 12, 2018.PNB now stands much behind of Bank of Baroda which has market-cap of Rs 328 billion today, against Rs 389 billion on last Monday.
Idea Cellular, ABB India, TVS Motor Company, ACC, MRF, Oil India and United Breweries are other notable companies that currently stood ahead of PNB in overall market-cap ranking.Meanwhile, Moody's Investors Service has today placed under review for downgrade PNB local and foreign currency deposit rating of Baa3/P-3 and foreign currency issuer rating Baa3.At the same time, Moody's has placed the bank's Baseline Credit Assessment (BCA) and adjusted BCA of ba3 and the Counterparty Risk Assessment (CRA) of Baa3(cr)/P-3(cr) under review for downgrade.
“The primary driver for today's rating action is the risk of weakening of the bank's standalone credit profile, as a result of the discovery of a number of fraudulent transactions.




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