Punjab National Bank (PNB) reported a mixed set of numbers for 2QFY2016 with subdued operating performance, while its asset quality improved marginally. Loan growth remains modest; NIM improves qoq During 2QFY2016, advances and deposits grew by 6.7% and 14.0% yoy, respectively, with the CD ratio at 70.6%. Domestic advances growth was sluggish at 6.3% yoy, while international advances saw a modest growth of 9.5% yoy. In domestic advances, the retail loan book grew by 23.0% yoy, aided by 27.6% yoy growth in housing segment. Industry loans growth was modest at 7.6% yoy as the bank was cautious lending to the large industry segment. CASA deposits grew by 13.4% yoy with Current deposits growing by 25.0% yoy. The NIM improved by 7bp qoq to 2.97%, due to higher yields. Other income (excl. treasury) was weak witnessing a decline of 12.9% yoy due to a decline seen in both fee income and recoveries. Asset quality improved for the second consecutive quarter as the Gross NPA ratio decreased by 11bp qoq to 6.36%, while the Net NPA also drifted downwards by 6bp qoq to 3.99%. The bank reported the second quarter of consecutive significant decline in slippages on a qoq basis to `2,613cr...