The shares of Punjab National Bank fell by 10 percent on the second day consecutively which has led to the investors losing out as much as ₹6,705 Crore after the BSE was reported about a $1.8 Billion scam detected at the bank by the public sector lender. On the intra-day, the shares went down by 8.3 percent to ₹135.70 and the shares of Punjab National Bank closed down at ₹161.65. The investors lost a huge amount of ₹6,700 Crore. The shares of the Gitanjali Gems tanked by 20 percent to ₹46.90 as per the listing on the Bombay Stock Exchange. The S&P BSE Sensex next 50 dropped down by 0.64 percent to 34679.87.
The fall of Punjab National Bank and its effect could easily be seen as a domino effect on the other banks as well as a result of which the stocks of most banks dropped down big time. It was reported by Times of India that according to investigations which took place initially, Allahabad Bank, Union Bank, and Axis Bank had funded around ₹7,000 Crore on the strength of the letters of undertaking (LoUs), giving the largest exposure to the Allahabad Bank. However, in the process, a major part of the loans was sold down. The second exposure of this step is said to have been received by the Bank of Mauritius and the State Bank of India.
Bank of Baroda’s intraday share fell down by 3.3 percent to ₹160.30, that of Allahabad Bank fell by 3.73 percent to ₹54 and that of Union Bank of India fell down by 1.15 percent to ₹119.85. Punjab National Bank was the most traded stock on the Bombay Stock Exchange with its stock having traded hands 1.23 Crore times. The second most active stock having traded hands of 16.36 Lakh times is Bank of Baroda.