PNB shares in focus on Monday after bank reports Rs 2,434 crore loan fraud; check details
On Friday, PNB shares witnessed some pressure, closing 0.50 per cent lower at Rs 120.35 on the BSE against the previous close of Rs 120.95.
- Dec 27, 2025,
- Updated Dec 27, 2025 9:52 AM IST
Punjab National Bank (PNB) shares are expected to be in the spotlight when the stock market opens on Monday, following a significant disclosure made by the state-run lender late Friday. In a regulatory filing on December 26, post-market hours, the bank reported a borrowing fraud amounting to over Rs 2,400 crore involving the erstwhile promoters of two SREI Group entities.
The bank informed the exchanges that it has flagged a fraud of Rs 1,240.94 crore in the account of SREI Equipment Finance Ltd (SEFL) and Rs 1,193.06 crore in SREI Infrastructure Finance Ltd (SIFL). However, PNB clarified that it has already made a 100 per cent provision for the entire outstanding amount in both accounts.
The filing further noted that these companies have been successfully resolved under the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT).
On Friday, PNB shares witnessed some pressure, closing 0.50 per cent lower at Rs 120.35 on the BSE against the previous close of Rs 120.95. The counter has remained robust over the longer term, gaining nearly 13 per cent in the last six months and more than 17 per cent year-to-date in 2025.
Technical indicators suggest the stock is currently trading in a neutral zone. According to data from Trendlyne, the relative strength index (RSI) stands at 50.8, while the money flow index is at 55.4. Both indicators signal that the stock is in the mid-range—neither overbought nor oversold.
The fraud reporting involves the SREI Group. According to the group's website, SREI Infrastructure Finance Limited (SIFL) started financing construction equipment in 1989 before expanding into broader infrastructure lending. Once classified as an infrastructure finance company, it was later designated as an NBFC-Investment and Credit Company (NBFC-ICC) and was notified as a public financial institution by the Ministry of Corporate Affairs in 2011, building a presence in asset finance over three decades.
Earlier, for the September quarter, PNB reported a 14 per cent year-on-year rise in net profit to Rs 4,904 crore. The lender’s provisions for the September quarter stood at Rs 643 crore, marking an increase on both a yearly and quarterly basis.
Crucially, analysts tracking the stock often look at the Provision Coverage Ratio (PCR) to gauge asset quality. PNB reported an improvement here as well, with the PCR (including technical write-offs) rising by 24 basis points year-on-year to hit 96.91 per cent in the second quarter.
Operating profit for the second quarter of FY26 rose by 5.5 per cent year-on-year to Rs 7,227 crore. For the first half of the financial year (H1FY26), operating profit grew by 6.5 per cent to Rs 14,308 crore. Meanwhile, Net Interest Income (NII) for H1FY26 stood at Rs 21,047 crore, recording a marginal growth of 0.26 per cent.
Earlier on December 6, PNB informed the exchanges about a revision in its lending rates following the Reserve Bank of India's monetary policy action.
Consequent to the central bank decreasing the repo rate on December 5, PNB slashed its repo linked lending rate (RLLR) from 8.35 per cent to 8.10 per cent, effective from December 6. The bank noted that the marginal cost of lending rate (MCLR) and Base Rate remained unchanged during this review.
Punjab National Bank (PNB) shares are expected to be in the spotlight when the stock market opens on Monday, following a significant disclosure made by the state-run lender late Friday. In a regulatory filing on December 26, post-market hours, the bank reported a borrowing fraud amounting to over Rs 2,400 crore involving the erstwhile promoters of two SREI Group entities.
The bank informed the exchanges that it has flagged a fraud of Rs 1,240.94 crore in the account of SREI Equipment Finance Ltd (SEFL) and Rs 1,193.06 crore in SREI Infrastructure Finance Ltd (SIFL). However, PNB clarified that it has already made a 100 per cent provision for the entire outstanding amount in both accounts.
The filing further noted that these companies have been successfully resolved under the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT).
On Friday, PNB shares witnessed some pressure, closing 0.50 per cent lower at Rs 120.35 on the BSE against the previous close of Rs 120.95. The counter has remained robust over the longer term, gaining nearly 13 per cent in the last six months and more than 17 per cent year-to-date in 2025.
Technical indicators suggest the stock is currently trading in a neutral zone. According to data from Trendlyne, the relative strength index (RSI) stands at 50.8, while the money flow index is at 55.4. Both indicators signal that the stock is in the mid-range—neither overbought nor oversold.
The fraud reporting involves the SREI Group. According to the group's website, SREI Infrastructure Finance Limited (SIFL) started financing construction equipment in 1989 before expanding into broader infrastructure lending. Once classified as an infrastructure finance company, it was later designated as an NBFC-Investment and Credit Company (NBFC-ICC) and was notified as a public financial institution by the Ministry of Corporate Affairs in 2011, building a presence in asset finance over three decades.
Earlier, for the September quarter, PNB reported a 14 per cent year-on-year rise in net profit to Rs 4,904 crore. The lender’s provisions for the September quarter stood at Rs 643 crore, marking an increase on both a yearly and quarterly basis.
Crucially, analysts tracking the stock often look at the Provision Coverage Ratio (PCR) to gauge asset quality. PNB reported an improvement here as well, with the PCR (including technical write-offs) rising by 24 basis points year-on-year to hit 96.91 per cent in the second quarter.
Operating profit for the second quarter of FY26 rose by 5.5 per cent year-on-year to Rs 7,227 crore. For the first half of the financial year (H1FY26), operating profit grew by 6.5 per cent to Rs 14,308 crore. Meanwhile, Net Interest Income (NII) for H1FY26 stood at Rs 21,047 crore, recording a marginal growth of 0.26 per cent.
Earlier on December 6, PNB informed the exchanges about a revision in its lending rates following the Reserve Bank of India's monetary policy action.
Consequent to the central bank decreasing the repo rate on December 5, PNB slashed its repo linked lending rate (RLLR) from 8.35 per cent to 8.10 per cent, effective from December 6. The bank noted that the marginal cost of lending rate (MCLR) and Base Rate remained unchanged during this review.