mumbai shares of punjab national bank pnb fell 12 to rs 76 on wednesday a day after it reported a net loss of rs 13417 crore for the quarter ended march 31 2018 the lenders shares have lost more than 60 value from peak levels this year after it detected the nirav modi fraud from february 14 when the bank filed an fir in the case the drop is over 40following the fall in share price the market capitalisation of the bank at wednesdays close stood at rs 20856 crore which is lower than its arm pnb housing finances mcap of rs 21265 crore it is also worth much lower than rbl bank a small private lender that has an mcap of rs 21579 crore according to pnb housings stock market filing its parent pnb holds close to 33 stake which is worth nearly rs 7000 crorethis shows that the market is valuing pnbs banking business much lower than rs 10000 crore considering that the bank has shares in unlisted pnb metlife insurance and in pnb gilts the bank also holds shares in uti asset management companythe biggest loser on account of the crash in share price is the banks largest shareholder the life insurance corporation of india which currently has a 1224 stake lics investment in other banking shares also took a hit on wednesday with large lenders sbi icici and bank of baroda closing lower on concerns of bond losses as yields on government securities rose investment bank jefferies india said in a report that pnb was in immediate need of recapitalisation by the government according to jefferies india with around rs 8400 crore of deferred lossesexpenses the bank is headed for a loss in fy19 pnb may also be restricted to conduct normal business two of its executive directors have also been divested of their functional powers pnb will likely face significant operational challenges in the near term the firm saidfollowing the banks abysmal quarterly performance brokerage houses have come out with a sell rating even after wednesdays fall brokerage houses do not see value in the stock edelweiss securities analyst kunal shah said the moot question regards pnb is what to do at this juncture after the 60plus correction in the stock price from its peak and washout q4fy18 earnings we believe governance issues operational challenges uncertain business prospects and diluted franchise makes it a dud investment proposition