PNB Housing Finance is the mortgage finance arm of one of India’s largest public sector lenders, Punjab National Bank, which owns 51%, and is the fourth largest housing finance company in the country.

Bank Nifty, the banking share index is down 1.2% or 235 points at 19,148 at 10.15 hours. Meanwhile, the benchmark CNX Nifty is down 22 points at 8,734.75.

Meanwhile, the country's second largest public sector bank by assets had reported net profit of Rs 755.41 crore for the October- December quarter of the 2013-14 financial year.

It comes at a time when UTI is looking to consolidate under a new chief after being headless for a few years. The market conditions have improved dramatically and this could have helped the fund house, which still has the best mix of funds, be it the asset type (equity vs debt) and the geographical spread, to surge forward.

At 9:30AM, the 30-share Sensex was up 189 points a 27,696 and the 50-share Nifty was up 56 points at 8,340.

JK Tyre and Industries has surged 8% to Rs 129, while Punjab National Bank gained nearly 4% to Rs 225 in early morning deals on the BSE.

Canara Bank, Bank of India, Federal Bank, Yes Bank, Punjab National Bank, Kotak Mahindra Bank, ICICI Bank and Bank of Baroda are down between 2-4%, while State Bank of India (SBI), IndusInd Bank and Axis Bank are down 1% each on the National Stock Exchange (NSE).

It had reported net profit of Rs 505 crore in the corresponding (July-September) quarter of 2013-14.

The bank's asset quality worsened, with gross NPA coming in at 5.65% compared to 5.48% q-o-q. Net NPA was at 3.26% compared to 3.02% in the previous quarter.

“The board (of the bank) also considered and granted in- principle approval for spilt of existing equity shares of face value of Rs 10 each into five equity shares of face value of Rs 2 each,” PNB said in a statement on Monday.