PNB edges higher on fund raising plans

NEW DELHI: Shares of Punjab National Bank (PNB) climbed over 1 per cent to Rs 83.15 in Thursday's session after the bank said it was planning to raise funds by selling non-core assets and a rights issue.

The public lender is looking to raise Rs 10,000 crore in 2019-20 from sale of non-core assets, rights issue and expected write-backs from two large accounts undergoing insolvency proceedings.

The lender is expecting a write-back of Rs 4,000 crore from Essar SteelNSE 0.00 % and Bhushan Power and Steel which are undergoing resolution under the Insolvency and Bankruptcy Code.

Morgan Stanley maintained an underweight view on the stock, with a price target of Rs 75 per share, highlighting that the bank's asset quality remains weak.