Topping our estimates, net profit of Punjab National Bank (PNB) grew by 79.3% qoq to Rs5.5bn in 2QFY17 primarily due to relatively higher other income of Rs23.9bn (+76% yoy & 1.4% qoq) and lower provisioning expenses (decline of 7.5% qoq). Other income growth was led by one-time higher treasury profit of Rs6.5bn vs. Rs6bn in 1QFY17 & Rs2.1bn in 2QFY16. Decline in G-sec yield along with higher SLR holding helped PNB to monetize part of its excess SLR in 2QFY17. Provisioning expenses dipped 7.5% qoq to Rs25.3bn led by lower fresh slippages (at Rs62bn vs. Rs92.3bn in 1QFY17) and continued traction on upgrades and recovery. As we believe improved...