Though we believe PNB will be one of the major beneficiaries of recently announced mega PSB recapitalisation plan, we expect its credit cost to rise in the medium-term, which will adversely impact its earnings over next 2-3 quarters. Further, the Government of India is mulling consolidation of PSBs, which creates a very high level of uncertainty for the banks' future earnings trajectory. We expect the Bank would continue to witness elevated level of credit cost, which will keep its earnings and return ratios subdued over next 3-6 quarters. Hence, we continue to maintain our HOLD recommendation on the stock with a revised SOTP-based Target Price of Rs187 (from Rs167 earlier) based on 1.2x FY19 Adj. BV implying standalone value at of...