PNB gains on reports related to Nirav Modi

Several reports are doing round in the markets, stating that Nirav Modi's assets mortgaged with Punjab National Bank (PNB) will be given back to the bank. Reacting to this news, the stock of the company increased by 3.09 per cent.

Around Rs 1,200-1,500 crore assets of Nirav Modi mortgaged with PNB and attached by Enforcement Directorate (ED) will be given back to the bank. The assets, which are mortgaged with the bank, include shares and properties in South Mumbai. ED had attached all encumbered and unencumbered assets, belonging to Nirav Modi. He was also declared as a fugitive economic offender by PMLA court. Similarly, Mehul Choksi's assets, mortgaged with PNB, might also be returned to the bank since he is facing a slew of corruption charges and is declared a fugitive economic offender.

Overall PNB had incurred a loss of around Rs 13,000 crore in fraudulent LoUs, issued to Nirav Modi and Mehul Choksi. The development, if implemented as per market reports, will be a positive move for PNB, which is in pressure due to bad loans.

Reacting to such market reports, the stock of the bank, closed at Rs 66.70 on Wednesday, up by 3.09 per cent or Rs 2 per share. The 52-week high is Rs 99.90 and 52-week low is Rs 55.70 on BSE.