Shares of Punjab National Bank surged as much as 2.7% on the BSE to Rs. 58.9 per share as against previous closing price of Rs. 57.35. The gains have come just ahead of the announcement of the third quarterly results by the public sector bank that is due later today. Additionally, the bank's board has approved raising of funds via issuance of Basel III compliant Tier-II Bonds amounting up to Rs 1,000 crore in one or more tranches.
There is expected an increase in net profit as a result of decline in slippages as well as recovery from NCLT.
In Q3FY19, the bank posted a profit of Rs. 246.5 crore and there are expectations of an increase in net profit by 162%. In the quarter ended September of FY20, the lender's net profit came in at Rs. 507.1 crore.
Also, provisions are expected to come down by as much as 8% yoy. In Q3FY19, provisions were set aside at Rs. 2753.8 crore.