Mumbai: PNB shares tumbled over 8 percent, wiping-out Rs 2,760 crore from its market valuation on Tuesday, after the company posted a marginal 2.5 percent increase in net profit for the third quarter ended December 31.
Investors were also disappointed by the asset quality of Punjab National Bank.
The PNB scrip plunged 7.94 percent to settle at Rs 176.75 on the BSE. During the day, it lost 8.56 percent to Rs 175.55.
On the NSE, it tanked 8.32 percent to close the day at Rs 175.85.
PNB's market value fell by Rs 2,760.07 crore to Rs 31,997.93 crore.
In terms of volume, 37.15 lakh shares of the company changed hands at the BSE and over 2 crore shares were traded at the NSE during the day.
"PNB reported poor set of numbers for the quarter, affected by asset quality challenges," said Vaibhav Agrawal VP Research ? Banking, Angel Broking.
PNB on Tuesday posted net profit of Rs 774.56 crore for the October-December quarter on account of higher provisioning for bad loans.
The country's second largest public sector bank by assets had reported net profit of Rs 755.41 crore for the third quarter of the 2013-14 financial year.
As far as PNB's asset quality is concerned, gross NPAs as a percentage to total advances rose to 5.97 percent from 4.96 percent in the same quarter an year ago.
Its net NPAs went up to 3.82 percent from 2.80 percent at the end of December 2013, PNB said in a statement.
Gross NPA in absolute terms rose to Rs 22,211.43 crore as compared to Rs 16,595.84 crore at the end of December 2013.
