The big shareholder groups in Punjab & Sind Bank (NSE:PSB) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.
Punjab & Sind Bank is a smaller company with a market capitalization of ₹7.5b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Punjab & Sind Bank.
View our latest analysis for Punjab & Sind Bank
What Does The Institutional Ownership Tell Us About Punjab & Sind Bank?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Punjab & Sind Bank already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Punjab & Sind Bank's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Punjab & Sind Bank. India is currently the largest shareholder, with 83% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 6.0% and 0.1% of the shares outstanding respectively, Life Insurance Corporation of India, Asset Management Arm and Jupiter Asset Management Limited are the second and third largest shareholders.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Punjab & Sind Bank
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that Punjab & Sind Bank insiders own under 1% of the company. It has a market capitalization of just ₹7.5b, and the board has only ₹525k worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public holds a 11% stake in Punjab & Sind Bank. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 3 warning signs for Punjab & Sind Bank (1 is significant!) that you should be aware of before investing here.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About NSEI:PSB
Punjab & Sind Bank
Provides various banking and financial products and services in India.
Adequate balance sheet with questionable track record.
