Punjab National Bank (PNB) has come out with a disappointing set of numbers for 3QFY2016. Although we had expected the results to be unimpressive, but the quantum of rise in the Gross NPAs has surprised us. The bank reported a PAT of only Rs. 51cr for the quarter despite a tax write back of Rs. 908cr. Loan growth remained subdued; NIM under pressure: For the quarter, advances growth at 8.4% yoy remained subdued, while deposit growth was decent at 13.3% yoy. CASA deposits grew by 14.3% yoy with Current deposits growing by 22.9% yoy and Savings deposits growing by 12.5% yoy. The CASA ratio stood at 40.4%. The NIM for the quarter declined by 22bp qoq to 2.75% due to lower yield on advances, which is largely due to base rate cuts. Provisions doubled to Rs. 3,775cr compared to Rs. 1,882cr in the sequential previous quarter, resulting in a loss at the PBT level to the tune of Rs. 857cr. The bank got a tax write back of Rs. 908cr; as a result the bank generated a PAT of Rs. 51cr for the quarter. Sharp deterioration in asset quality: Asset quality deteriorated sharply during the quarter with gross slippages of...