State-run Punjab National Bank shares jumped 4 per cent on Thursday, after its subsidiary PNB Housing Finance filed a prospectus for a Rs 2,500 crore initial public offer (IPO).
Punjab National Bank owns 51 per cent stake in PNB Housing Finance. Post IPO, PNB's stake is likely to come down to 35-37 per cent.
For the year ended March 2016, PNB Housing Finance reported a profit after tax of Rs 327.57 crore while revenue from operations stood at Rs 2,699.54 crore.
Punjab National Bank, India's fourth largest state-run lender, has been struggling under rising bad loans. In the March quarter, it posted a Rs 5,367 crore loss, the biggest-ever quarterly loss for any lender in the Indian banking industry.
PNB said its balance sheet clean-up is not complete yet, which means that the lender may continue to struggle with high bad loans for a few more quarters.
PNB shares closed 2.5 per cent higher at Rs 116.85 on the National Stock Exchange. The stock outperformed the broader markets, which ended flat.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
