PNB stock falls after bonds put on rating watch
There has been significant progress on the amalgamation including approvals from the Boards of the banks.
Mumbai: Punjab National Bank (PNB) stock fell 2.32 per cent to Rs 63.20 after it said that rating agency Crisil had put its bonds on "rating watch with developing implications" from stable.
Crisil in September had rated these bonds as stable and the revision was on account of the announcements made by the Ministry of Finance with respect to the proposed amalgamation of public sector banks, PNB said in a regulatory filing.
United Bank of India and Oriental Bank of Commerce will be merged with PNB, making the merged entity the second-largest public sector bank.
There has been significant progress on the amalgamation including approvals from the Boards of the banks. Crisil will resolve the rating watch once clarity emerges, post-merger completion, on the merged entity's business and financial profile.
“Crisil will monitor for potential integration challenges and any impact on the earnings profile of the merged entity. The asset quality of the merged entity will also be a monitorable,” it said.