PNB stock plunges 6% to hit to 20-month low

PNB stock plunges 6% to hit to 20-month low
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Mumbai: Shares of Punjab National Bank slumped over 6% and fell to a 20-month low on the stock exchanges on Wednesday, after Nirav Modi’s Firestar Diamond filed a bankruptcy plea in the US and a local court in Mumbai issued summons to the accused diamantaire.

Reacting to the developments, the stock on Wednesday fell to an intra-day low of Rs 92, down 6.45% over its previous closing price on BSE. The stock has fallen to a level last seen on June 20, 2016.

Since February 14, when the scam broke, the stock has fallen as much as 37% on BSE.

On the NSE as well, the stock touched fresh 52-week low of Rs 92.

At close, however, the stock had recovered Rs 3.05, or 3.10% to close at Rs 101.40.

Modi’s international jewellery business Firestar Diamond filed a bankruptcy plea in the US.

Moreover, a local court in Mumbai has issued summons to the diamantaire in connection with an income tax evasion probe against him and his companies.

PNB has said that the alleged fraud perpetrated by jewellers Modi and Mehul Choksi may be around $2 billion, over the $204 million more than previously estimated.

Shares of Gitanjali Gems continued to lose ground and fell 5% to its 52-week low level yet again on the BSE and NSE.

PTI