Category: Stock Market

24 Sep 2018 20:04

Joined:	24/09/2018
Level:	Bronze
Points:	0

Points:	3

Punjab National Bank share price fall - to sell or hold?

Do you have PNB shares and are unsure whether or not to sell them now or hold them for another couple of years? Get some useful advice at this Ask Expert page to help you take a firm decision.

Recently Punjab National Bank noticed a fall in the share price to below 70. I purchased the shares @ 74. Considering the merger of the bank with other banks and amount of business that PNB has been handling, what do you recommend? Better to sell now or wait till the merger or do you see the growth of this share (after it gets merged considering the ongoing performance of the other two banks) in the coming 2-3 years?

#153009

30 Sep 2018 16:56

Joined:	10/12/2016
Level:	Diamond
Points:	20251

Points:	3 (Rs 3)

Though the share market is at quite a significant level but some shares are not doing well and PNB is one of them. The NPA issues and the recent loan fiasco has hammered the PNB share.

Please remember that it is a Public Sector bank and will be getting support from the Govt and after merger the combined entity may come up in the market. You will also be issued some shares of that new entity in some ratio against your present holdings and subsequently the holding of PNB with you will be null.

Anyway banking sector had such upheavals many times in past and again the good times will come for this sector when the NPA woes are over. So I do not recommend selling at this stage rather one can keep it considering the long term horizon in mind.

Share market is an area where long time investments and patience pays rich dividends and one should ignore the day to day fluctuations.

Knowledge is power.

#153010

30 Sep 2018 17:12

Joined:	24/09/2018
Level:	Gold
Points:	1724

Points:	1 (Rs 1)

I don't have shares of pnb. But I would recommend you not to sell it but buy it at this rate as its going to increase in future even if gets merged with other banks.

Normally shares of banks don't give loss.

Then nothing can be said firmly about the share market as rate of shares change in few minutes.

Sanjeev

" It is better to be hated for what you are than to be loved for what you are not" ... Andre Gide

#153012

30 Sep 2018 18:14

Joined:	02/06/2009
Level:	Diamond
Points:	45467

Points:	2 (Rs 2)

Punjab National bank is the second biggest bank and next to SBI. But because of various reasons well known to all the PNB got a bad name and there is a significant decrease in the value of the share. Now the merger of the bank may give some good impact. The shareholders of PNB will get equivalent shares of the new entity. The bank share value will go up and I am confident that the prices of these shares will go up. So I advise you to wait for some time and not to sell at this stage. If you sell at this stage it will be a loss to you. So please wait.

drrao
always confident

#153018

30 Sep 2018 20:24

Joined:	25/11/2014
Level:	Diamond
Points:	11655

Points:	2 (Rs 2)

The track - record of PNB had been quite encouraging prior to scam and the its share - prices plummeted owing to the failure of the management to curb misadministration resulting in huge loss.
However, the dark - phase will be over with the ongoing steps to merge a number of banks and as such the present drifting of its share - price below Rs 70/ - should not discourage you for the further purchase of PNB share.
I would recommend you to exploit this opportunity by adding more shares in your basket of PNB and the same can be sold after 2-3 years when the situation improves.
Since the Nationalised - banks are backed by the Government and hence the price - value is sure to improve after the merger of the Nationlised- bank takes place. You have to ensure your financial - status prior to investment. Don't take any loan to enrich your portfolio.

#153028

01 Oct 2018 15:10

Joined:	23/09/2015
Level:	Platinum
Points:	52757

Points:	2 (Rs 2)

The price of PNB share has gone down from 52 week high of Rs. 231.60/- to Rs. 63/- right now. Needless to state that this is due to Neerav Modi-fiasco came to light. The experts feel that it would go down further and the resistance is at Rs. 50/- level. Thereafter, it will start moving upwards.

So, if you have a time horizon of 3 years or so, you can hold this share for a great profit. If you don't have that much time, then you have to book loss and sell partially at every marginal increase of the price.

This share has become a long-time investment.

Beware! I question everything and everybody.

Punjab National Bank share price fall - to sell or hold?

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