PNB Share Price: Stock at 21 months high, know why this share is running so much
PNB Share Price: Shares of Punjab National Bank reached a 21-month high in Friday’s intra-day trade. This action is being seen in the stock after getting the government’s approval to sell its entire stake in UTI Asset Management Company (UTI AMC).
Highlights
⏩ PNB reached a 21-month high of Rs 54.90 per share in intra-day trade.
⏩ Received government approval to sell its entire stake in UTI AMC.
⏩ Shares of UTI AMC rose 7 percent to Rs 740 per share.
New Delhi. Shares of Punjab National Bank (PNB Share Price) reached a 21-month high of Rs 54.90 per share in Friday’s intra-day trade. The stock is trading at its highest level since February 2020. This action is being seen in the stock after getting the government’s approval to sell its entire stake in UTI Asset Management Company (UTI AMC).
Meanwhile, UTI AMC Share Price rose 7 percent to Rs 740 per share, while the S&P BSE Sensex was down 0.14 percent at 61,188 at 9:57 am.
PNB said, “The Exchange is informed that the Bank has received the approval of DIPAM, Ministry of Finance, Government of India, for disinvestment of entire/part shareholding of the Bank in UTI Asset Management Company Limited, subject to SEBI regulations/other application shall be in one or several stages, subject to compliance with the rules.”
The bank holds a 15.22 percent stake in UTI AMC, which is worth around Rs 1,300 crore at current valuations. In the last month, PNB stock gained 27 percent compared to a 4.6 percent rise in S&P BSE Sensex.
What the rating agency saw
On Thursday, November 23, PNB informed that ‘CARE Ratings’ has changed the outlook for the bank’s AT-1, Tier II bonds, and infrastructure bonds to ‘positive’ from ‘stable’. Analysts at Care Ratings said that PNB’s higher stake in debt instruments and support from the government has given the company these ratings. Explain that the Government of India holds the largest stake in this bank.
In addition, PNB has grown in importance in the Indian banking sector and is the second largest public sector bank (PSB) in terms of business position (advances and deposits) and also merged with the former Oriental Bank of Commerce and United Bank of India…
That's great news