New Delhi (19.03.2025): In less than two weeks from now, the financial result of March Qtr 2025 shall be the litmus test for PNB Gilts to qualify as a worthwhile investment option in the fixed-income treasury space. Being the only standalone primary dealer listed on BSE and NSE, it enjoys a monopoly position as the sole equity investment option in this space.
It draws a context from a recently filled gap at the top which is widely seen in the market as an undue delay at the cost of investors. Vikas Goel, formerly a top executive with Deutsche Bank, resigned as MD & CEO of PNB Gilts on 16.12.2024 while the exodus came w.e.f. 23.12.2024. The capital market functions day-in and day-out yet it took more than nine weeks to find Goel’s successor. Pareed Sunil replaced Goel as the new MD & CEO after the RBI gave its consent to the appointment of on 26.02.2025. Interestingly, three weeks have passed and PNB Gilts hasn’t updated its official website with the development yet.
A section of stakeholders in the capital market says that the undue delay in the appointment of Goel’s successor witnessed a snowball effect. PNB Gilt’s share price slipped 61.07% from Rs 122.08 on 16.12.2024 to Rs. 74.56 on 17.03.2025 while its Market Capital declined from Rs 2,197 cr to Rs 1,342 cr between 16.12.2024 and 17.03.2025.
Marking a shift from three consecutive quarters profit, PNB Gilts reported a loss of Rs 10.11 crore in the quarter ending 31.12.2024 with revenue declining 27.63% quarter-on-quarter. It witnessed successive shrink in profits for three consecutive quarters Sep’24 (–114.68 Cr), Jun’24 (– 53.44 Cr) and Mar’24 (– 68.13 Cr).
A section of market experts says there is severe pessimism and a lack of motivation in the team due to the exodus of star dealers and top-performing talent.
The prospects for fixed-income markets have started showing green shoots with the new RBI Governor calming markets with a much-needed 25 bps rate cut paving the way for future interest rate reduction to boost the economy and capital markets. The rupee has gained strength at 86.56 from 87.91 level as the Indian forex reserve rises substantially. Also, CPI has come down to 3.61% giving elbow room to RBI to cut rate aggressively.
Despite some amount of optimism equity investors are still in doubt regarding the company’s future prospects.
Expectations were galore that someone from private sector fixed income trading background with expertise in managing big ticket treasury portfolio of any Bank/ Mutual Fund/ Insurance would be the ideal candidate suitable for responsibility.
In case March Qtr 2025, results are below market expectations a mass exodus of long-term institutional investors is an eminent possibility.
Only the financial result of March Qtr 2025 would testify whether market is enthused by the appointment of the new Managing Director or not as he is perceived to be predominantly from operations side and not market savvy.
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About PNB Gilts:
PNB Gilts Limited, a subsidiary of Punjab National Bank, is a prominent player in the Indian debt market. It was among the first to receive a Primary Dealership License from the RBI. The company is known for its role in strengthening the domestic fixed-income markets and has a high market share. Its primary activities include underwriting government securities, trading in various fixed-income instruments, and dealing with money market instruments. PNB Gilts Limited's experienced professionals manage a dedicated trading desk with strong research capabilities.
