CRISIL Ratings stated that the rating continues to reflect the expectation of strong support from the parent, Punjab National Bank.
The rating also factors in healthy capitalisation and strong liquidity. These rating strengths are partially offset by volatility in earnings because of inherent susceptibility to movement in interest rates and lack of diversity in revenue.
PNB Gilts bids at auctions of G-Secs and infuses liquidity in the secondary market. It also offers debt capital market (DCM) services. As part of its DCM business, it acts as an arranger or lead manager for private placement of debt by corporate entities and public sector units.
The scrip rose 0.98% to currently trade at Rs 124.15 on the BSE.