Stocks of Punjab National Bank Booms

The PSU bank said in an exchange filing: The Exchange is hereby informed that the Bank has received approval of DIPAM, Ministry of Finance, Government of India, for divesting of the Bank’s entire/part stake in UTI Asset Management Company Limited in single or multiple tranches, subject to compliance with SEBI Regulations or other applicable regulatory guidelines.
The bank, which owns a 15.22% share in UTI AMC, will sell all of its stock in the mutual fund business in one or more tranches in order to realize a profit. At this time, it is worth $1,329 crore.PNB stated in a separate filing that the outlook for the bank’s AT-1, Tier II, and infrastructure bonds has changed from stable to positive as a result of CARE Ratings’ rating action.The rating agency said that the company’s ratings continue to get strength from its strong and established franchise through its pan-India branch network, which helps it generate a low-cost and steady current account savings account deposit base.The ratings also take into account that the bank has given out more loans and has a good amount of capital, both of which make it stronger.The ratings also take into account the bank’s increased advances, comfortable capitalization levels, post-equity infusion through QIP in FY22, and internal accruals as a result of improved profitability in FY22, even though profitability remained muted, all of which improve the bank’s ability to absorb asset quality pressures and support growth in the near term. It was said, though, that the ratings are still held back by the moderate but improving asset quality parameters.
Improvements in the capitalization levels with a significant cushion over the regulatory requirement, continued improvement in profitability and capitalization while improving its asset quality parameters on a sustained basis, and improvement in the asset quality parameters with gross non-performing assets reducing below 8.5% or net non-performing assets below 3% on a sustained basis could be positive factors that could lead to a positive rating action or upgrade, according to Care Rating.