Punjab & Sind Bank Shares Plunge 20% to 52-Week-Low; Emerges Worst Performing PSU Bank Stock Today

Punjab & Sind Bank Share Price: Amid weak performance of all the bank PSU stocks, Punjab & Sind Bank emerged as the biggest laggard after its share price fell by 20% on Tuesday. The company scrip tumbled 20% to its 52-week-lowest mark of Rs 34.86 apiece on NSE.

Additionally, its co-lender Uco Bank's stock plummeted 11% on NSE. Akin to the two stocks, all the Nifty PSU Bank stocks were trading in red on Tuesday as NSE and BSE continued their bearish run on the first day of financial year 2025-26. However, Bank of India and Canara Bank were the two exceptions as their share prices were up 0.7% and 3.6% respectively.

PSB stock price movement has come days after Punjab and Sind bank notified the conclusion of its Qualified Institutional Placement (QIP). The PSU Bank, in its recent BSE filing, stated that its board of directors approved the issue and allotment of 31,77,98,773 equity shares of face value Rs. 10 each to eligible qualified institutional buyers.

The recently concluded Punjab and Sind Bank QIP included Life Insurance Corporation of India (LIC), SBI Life Insurance, Central Bank of India, and Indian Overseas Bank as key allotees of QIP.

As per Punjab & Sind Bank's stock exchange filing, LIC was allotted 16.4% of total shares, equal to 5,21,24,055, SBI Life Insurance received 2,60,62,027, which accounted 8.2% of the total size. Central Bank of India accounted 6.15% of the total issue size, ie 1,95,46,520 shares. Indian Overseas Bank received 1,95,46,520 shares equal to 6.15% of the total issue.

Punjab & Sind Bank Share Price Trend

The PSU stock witnessed a 20% decline in its value on Wednesday to hit its lower circuit mark of Rs 34.81 apiece with a market capitalisation of Rs 23,593.47 crore. Its share hit a 52-week high mark of Rs 73.62 apiece on BSE on 29 July 2024. The company's scrip lost nearly 9.42% of its value in the last month and nearly 28.62% year to date (YTD).

RBI Penalises Punjab & Sind Bank

The Reserve Bank of India, last week, slapped a fine of Rs 68.2 lakh on Punjab & Sind Bank after the public sector undertakings (PSU) failed to comply with guidelines on the'Creation of a Central Repository of Large Common Exposures - Across Banks' and 'Financial Inclusion - Access to Banking Services - Basic Savings Bank Deposit Account (BSBDA). RBI also imposed a penalty of ₹75 lakh on HDFC Bank for non-compliance with certain directions issued by RBI on 'Know Your Customer' (KYC), the central bank said in a statement.
The Reserve Bank of India has also imposed a penalty of ₹10 lakh on KLM Axiva Finvest for non-compliance with requirements relating to declaration of dividends. In all cases, the central bank said the penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.