PNB’s two-day m-cap loss is six times its profit

MUMBAI:

Stocks

of PNB and

Gitanjali

Gems, the two entities involved in one of the largest bank scams in the country, crashed for the second consecutive session on Thursday, although the broader market showed a slightly bullish trend.

Weighed down by the more than Rs 11,000-crore fraud that originated in its business of financing diamond trades, the PNB stock lost 12%, following up on its 10% loss on Wednesday. In just two sessions, shareholders in PNB have now lost more than Rs 8,000 crore in market capitalisation.

This, news reports said, was equal to more than six times its full-year profit.

PNB had alleged that promoters of Gitanjali Gems — the

Choksi

family, who are related to the main fraud’s alleged perpetrator Nirav Modi — are also involved in the same fraud. As a result, shares of Gitanjali closed at the 20% lower circuit level at Rs 47 as it came under the scanner of various investigating agencies. The company’s market capitalisation is Rs 556 crore.

On Wednesday, the stock had lost nearly 7%. In the last one month, the stock has lost about 42%.

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