PNB, South Indian Bank Lower Lending Rates For Dec

PNB - Punjab National Bank has cut the MCLR - marginal cost of funds based lending rate by 0.05-0.10 percentage points for the month of December across maturities of numerous tenors. The bank has reduced the MCLR with effect from 1^st December 2016, it said in a regulatory filing.

MCLR is the new benchmark lending rate replaced by the RBI - Reserve Bank of India earlier this year. Calculated on the marginal cost of borrowing and return on net worth for banks, it has been introduced to ensure fair interest rates to borrowers as well as banks. Every month the MCLR rates are revised.

For a tenor of 5 years, the new MCLR is down by 0.05 per cent to 9.45 per cent. While that for 3-years, 1-year, 6-month, 3-month, 1-month and overnight tenor it has been cut by 0.1 per cent each in range of 9.30 per cent to 8.90 per cent.

Private sector lender South Indian Bank said that it has cut the MCLR in range of 0.05 per cent to 0.3 per cent for a select maturity period. For a 6-month tenor, the lending rate will be 0.05 per cent lower at 9.45 per cent, while that for one month and overnight period it is cut by 0.3 per cent each to 9 per cent and 9.05 per cent respectively.

The 3-month tenor MCLR will be down 0.25 per cent at 9.15 per cent for South Indian Bank.

PNB share price closed trading 1.27 per cent lower at Rs.136.40 on the NSE today. Out of the 1700 Shares listed on the NSE, PNB is one of the top 500 Stocks, identified by Dynamic Levels Researchers and stock analysts. The stock can be a good investment opportunity which can give you good returns. The scrip is a well analyzed stock, based on Dynamic Levels’ technical and fundamental research.

To seek information on the resistance and support levels of the scrip and know more about its fundamentals and financials, please pay a visit to PNB share price history.

PNB Falls 6% on the Thought of Quitting IBA Wage Settlement

Punjab National Bank , the state-run bank is pondering  to move away from Indian Banks Association (IBA)-led wage settlement in order to retain talent under its own remuneration package. Usha Ananthasubramanian, the Managing director and chief executive disclosed that the bank has set up an internal committee which would consist of general managers which is studying the feasibility of a new wage structure for the bank.

She added that the times are changing and they have to change with the time. They can't be saying that they are going to follow the same old things. They are moving into an era where it is needed to recognize performance and give remuneration to manage talent.

She, however, mentioned that it is an initial thought and nothing has been finalized so far. They will have to deliberate at the board level. And 've formed an internal committee of general managers to examine what would be pros and cons and they are working on it.

Ms Ananthasubramanian previously  said that the bank had decided to move away from the community-based wage negotiations but later had stick to IBA-led wage structure. Presently, banking lobby IBA, on behalf of its member banks, negotiates wage settlement with employee unions and officers associations.

The wage settlement is applicable for five years. In the last wage settlement, which was settled last November, employees were given 15 per cent hike e in salary and allowances. The wage revision was effective from November 1, 2012 and is will be valid till 2017.

As on 8^th Nov, PNB share price settled at Rs. 140.60 (up 0.28 per cent). The stock was trading at Rs. 140.85 and touched the day’s high and low at Rs. 141.20 and Rs. 138.15.

This morning the stock slipped 6 per cent.

PNB is analyzed by Dynamic Levels as the top 500 performing stocks for this quarter. For further details on the stock, refer to PNB share price forecast.

PNB Housing Finance IPO receives Sebi nod

PNB Housing Finance has been given capital markets regulator SEBI’s (Securities and Exchange Board of India’s) nod to raise Rs.2,500 crore via an initial public offering (IPO). The well known housing finance firm had filed IPO papers with Sebi in July.

The markets regulator issued its final ‘observations’ on 6th October on the draft offer documents, which is essential for any company to initiate the public offer. PNB Housing Finance, promoted by Punjab National Bank, has planned to use the proceeds from the share sale mainly towards augmenting its capital base. (PNB share price is trading at Rs. 139.95).

As per the DRHP (Draft Red Herring Prospectus), the company has planned to raise up to Rs.2,500 crore via the initial share sale and a part of it would be kept for the employees. It added that they believe that the listing of their equity shares will upgrade their visibility and brand name among existing and potential customers.

For the financial year ended March 2016, PNB Housing Finance disclosed a profit after tax of Rs.327.57 crore whereas the revenue from operations amounted to Rs.2,699.54 crore in the corresponding period.

At the end of March 2016, PNB held 51 per cent stake in the company. After IPO it would continue to hold around 35-37 per cent of the issued and paid-up share capital, as per the DRHP.

Kotak Investment Banking, BofA Merrill Lynch, JM Financial, J P Morgan and Morgan Stanley are the global coordinators and book running lead managers for the suggested issue. The company aspires to grow business and loan portfolio by consolidating position in chief geographies as well as by widening into specific target markets such as the affordable housing segment.

Sanjaya Gupta, MD, PNB Housing Finance said that historically, they were north-centric and it is very well balanced today. Incrementally, their business involves 40 per cent from north, 30 per cent each from west and south. At portfolio level, they are 45 per cent north-central, but equally divided between west and south with 32 per cent each.

In 2010 when this entire re-engineering process started, 77 per cent of the book was sourced from north. As of now, it stands at 45 per cent. On demand scenario, the company is positive about the mass market, but feels that the luxury market needs to step up. PNB Housing Finance also planned to open an overseas branch, most probably in the Middle East, to tap the potential of the NRI segment. The total market size of the NRI segment comprises about 12-13 per cent of the overall housing market. Gupta further added that they will focus on the NRI market and is going to work on that. He feels that in the Middle-East, the economies are stable and opening branches there will be a wise option.

PNB Share Price Rolled above 6%

PNB share price turns ecstatic and shot up sharply by 6%. The stock opened at Rs.134 as compared to its previous closing at Rs. 132.70. The stock touched the days high and low at Rs. 141.80 and Rs.134. Currently, the stock saw spurt in volume by more than 2.03 times, 1,77,19,735 shares are traded in the counter with a traded value of Rs. 24,389.44 lacs, as per NSE. Even on 6^th September the stock volume increased by more than 2.25 times.

In other news, the public sector Punjab National Bank (PNB) is going to impose a heavier fine from October on current account holders for not retaining the quarterly average balance according to the revised tariff. The revision in non-maintenance of QAB charges is going to be applied on current general accounts and PNB Smart Banking current accounts with effect from October 1.

PNB is identified by Dynamic Levels as one of the top 500 performing stocks for this quarter owing to its strong fundamentals. As of now, PNB share price is trading at Rs. 140.40.

The lower price band of the share is Rs. 119.45 and the upper price band is145.95. The 52 week high of PNB share price is observed at Rs. 146.25 on 30^th Nov ’15 while the 52 week low is seen at Rs. 69.25 on 24^th Feb ‘16. The Average Daily Movement of the stock is 4.18 and its average volume for last 20 days is 10339386.The stock yields 7.44% monthly returns. The market cap of the company amounts to Rs. 26056.94 (Cr) and has a book value of Rs. 198.41.In order to acquire further details on the support and resistance refer to PNB share price forecast.