Mumbai: Shares of Punjab National Bank on Wednesday settled for the day down 1.79 per cent, thereby eroding Rs 1,373 crore from its market capitalisation after following reports that the government has not given extension to its Chairman and Managing Director K R Kamath.
Kamath after he completed his 5-year term in the state-run bank on Monday.
As per the government rules, the CMD and Directors are appointed in public sector entities for a period of five years or up to the age of 60, whichever is earlier.
Following this shares of the bank opened on a weaker note and fell as much as 2.20 per cent to an intra day low of Rs 900.50. At the end of the trading session, the share was quoted at Rs 904.35, down 1.79 per cent over the previous closing price on the BSE.
Accordingly, the market capitalisation of the company declined by Rs 1,373 crore to Rs 31,967 crore.
Kamath, who joined PNB in October 2009, had another 13 months to superannuation.
Prior to joining PNB, he was the CMD of Allahabad Bank.
