The 6 reports from 3 analysts offering long term price targets
for Punjab National Bank have an average target of 35.33. The consensus estimate
represents an upside of 5.62%
from the last price of 33.45.
PNB reported exceptionally strong NII growth of 29% YoY and 24% QoQ, driven by domestic NIM expansion of 75bps to 3.34%. The NIM expansion was majorly driven by drop in CoF (global CoF down 70bps YoY and 38bps QoQ). Assuming that the lower CoF is sustainable in nature, we have revised our NIM/NII estimates. The management is guiding for NIM of 2.7-2.8% in FY21. Advances growth was weak and we expect it to remain so. We expect that merger integration issues and a generally adverse macro environment will prove to be the main growth headwinds in the near future. Gross global advances were up 0.6% YoY and down 0.7% QoQ. RAM grew by 5.7% YoY. Corporate advances were down 5% YoY. Lower non-interest income (down 32% YoY and 32% QoQ)...
With amalgamation of Oriental Bank of Commerce and United Bank of India on course, gross loans and advances rose 55.6% YoY and deposits increased 59.8% YoY during the quarter. Net interest income was up 63.0% YoY to Rs. 6,748cr on expansion in yields of investments and advances. GNPA/NNPA improved to 14.1%/5.4% vs. 15.5%/5.5% in Q1FY20. Short-term uncertainty in the economy may lead to higher NPAs and continue to put pressure on PNB's performance in the near-term. We...
Low on capital, weak on asset quality and profit Punjab National Bank (PNB) reported PAT of Rs3.1bn, down 74.5% YoY and 103% QoQ due to higher provisions and a higher effective tax rate. Operating profit grew by 2.5% YoY and 182% QoQ, driven by 8% YoY growth in operating income and 14.3% YoY increase in total opex. Overall, the P&L; for the quarter remained weak. Treasury profit was healthy even as fee income declined. The bank expects another Rs7-8bn of treasury profit in 2QFY21. Opportunities for treasury profit in 2HFY21 are expected to be less given that the yields have started firming up. Advances grew by 1.4% YoY (down 5.4% QoQ). Retail loans grew by 4.2% YoY while agri/allied book was up 8.9% YoY...
Punjab National Bank (PNB) posted largely in line with expectations results for Q1FY2021. Net interest income (NII) and PPoP came in line with expectations, but asset-quality performance was mixed. During the quarter, the bank had reported on amalgamated basis (erstwhile OBC and UBI merged in PNB) and, hence, priorperiod reported performance is not strictly comparable. As of Q1FY2021, the bank had an elevated 29.2% (in value terms) of accounts under moratorium (which comprise borrowers who have missed two or more EMIs). The moratorium book has not declined on a sequential basis (most other peers have reported a decline) and, hence, is a dampener. On a restated comparable basis, amalgamated NII was flat...
NPAs and merger-integration to consume much of the effort Punjab National Bank (PNB) reported better-than-expected quarterly results. NII came in 7.6% ahead of our estimate while PPOP came in 6.1% higher. Income generation was supported by a higher loan book growth (3% YoY, 10.9% QoQ), NIM expansion and trading profit. However, the bank reported a net loss of Rs6.97bn on account of continued high provisions. Headline asset quality improved as slippages were lower and the bank wrote off Rs43.1bn worth of loans. The NPA movement must be viewed in light of the Rs58bn worth of loans under standstill since end-Feb'20. We expect FY21 to throw up further stress, resulting in asset...
Punjab National Bank (PNB) reported 3QFY20 results with the key pointers being (1) Credit growth weak at -2%; integration issues a barrier going forward (2) Pre-tax loss due to higher provisions (3) Fresh NPA formation elevated due to stress in agri/MSME (4) Recoveries were strong, led by Essar primarily (See comprehensiveanalyst meet takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, PNB posted NII growth of 2% YoY at Rs43,551mn, PPOP growth of 21% YoY at Rs37,629mn and a loss of Rs 4,923mn versus a profit of Rs2,465mn in 3QFY19. We have revised our estimates for FY20/FY21 and retained Accumulate rating on PNB, revising our...
Punjab National Bank (PNB) reported 1QFY20 results with the key pointers being (1) Slippages remained under relative control with GNPA addition at Rs 54.12bn compared with an 8-quarter average of Rs 178.09bn over FY17-18 (2) Domestic margin was largely stable when adjusted for oneoffs, inching lower 3 bps YoY to 2.36% and (3) Growth remained the major issue with global loan growth at 3.2% YoY and domestic loan growth at 7.3% YoY. (See comprehensive analyst meet takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, PNB posted NII decline of 12% YoY at Rs41,414mn, PPOP decline of 17% YoY at Rs34,814mn and PAT was back in the black at Rs10,186mn versus a loss of Rs9,400mn in the corresponding quarter last year. We have revised our estimates for FY20/FY21 and retained Accumulate rating on PNB, revising our...
Punjab National Bank (PNB) reported weak quarterly numbers but lower provisions aided profitability. In absolute terms, GNPA and NNPA were stable but in percentage terms, they deteriorated due to muted advances. Net interest income (NII) declined by 11.7% y-o-y driven by muted loan growth and a decline in margins. However, by virtue of lower provisions (declined by 65% y-o-y) PNB reported a net profit of Rs. 1018.6 crore. While the overall loan book de grew by 8% q-o-q, the management's guidance of 10% loan growth for FY20E looks achievable,...
Non-Core Divestures, Recoveries To Address Capital Constraints And Growth Punjab National Bank (PNB) reported 4QFY19 results with the key pointers being (1) Higher than expected loss worsens capital positioning; non-core asset divestures and recoveries to help in garnering capital and address growth. (2) Excluding IL&FS; and slippages from existing NPA accounts, fresh slippages were mostly from medium sized accounts; FY20 recoveries to be similar as FY19 (a) RWA density indicates improvement in RWA profile and optimal capital utilization. (See comprehensive analyst meet takeaways on page 2 for significant incremental colour) Per se, on the key P&L; items, PNB posted NII growth of 37% YoY at Rs42,003mn, PPOP was back in the black at Rs28,612mn and a loss of Rs47,496mn...
bank reported full-year loss of INR99.8b (v/s loss of INR122.8b in FY18). Other income grew 21%/4% YoY/QoQ in a seasonally strong quarter to INR18.9b, driving 32% YoY growth in total income. Opex increased 7% QoQ to INR32.3b, resulting in PPoP of INR28.6b (-8% QoQ). CI ratio stood at 53%. Loan growth stood at 5.7% YoY/5.5% QoQ, driven by growth of 21.7% YoY in retail loans. Within retail, home loans grew 25.4% YoY. Deposit base increased 5.3% YoY, led by 8.3% YoY growth in CASA deposits. The CASA mix, thus, stood at 43.5% (v/s 43.4% in 3QFY19)....
on the accounting treatment by the bank of the one-off amount. However, irrespective of the accounting treatment, we believe the development is positive for the bank. Post the...
After posting losses in the previous three quarters, PNB reported net profit of INR2.5b in 3QFY19, led by lower provisions of INR27.5b (38% YoY /72% QoQ decline). NII increased 8% YoY to INR42.9b (6% beat), led by 6.7% YoY growth in gross domestic advances and 2.64% improvement in margins. Operating expenses grew 6% QoQ to INR30.1b as PNB charged INR1.62b 05 February 2019 towards the Employee Share Purchase Scheme (ESPS) and provided INR1.2b for wage-related provisions (outstanding wage provisions at INR5.9b). PPoP grew 9% QoQ to INR31b. Overall loan growth was muted at 1% QoQ (-4% YoY) due to sharp rundown in overseas advances. Retail loans grew 15% YoY driven by housing loans.
Punjab National Bank (PNB) reported 2QFY19 results with the key pointers being (1) A raft of nonstructural provisions totaling to Rs 52.6bn resulted in a negative bottomline even though NPA addition was contained at Rs 56.44bn (2) Series of capital infusion events since December 2017 still leave PNB with a CAR of 10.08%, which will constrain growth. Per se, on the results front, PNB posted NII decline of 1% YoY at Rs39,741mn, PPOP decline of 13% YoY at Rs28,395 and a Net Loss of Rs45,324mn. We have revised our estimates for FY19/FY20/FY21 and retained Accumulate rating on PNB, revising our target price to Rs70(from Rs67 earlier), and valuing the stock at 1.0x standalone 1HFY21E P/ABV and Rs22 for subsidiaries. A raft of non-structural provisions totaling to Rs 52.6bn resulted in a negative bottomline even...
Punjab National Bank Q2FY19 results Comment NII fell to Rs. 3974.11 Cr in Q2FY19 compared to Rs. 4691.86 Cr in Q1FY19. NII fell by 1.02% ( Rs. 41.07 Cr ) when compared with the same period last year.
PNB reported a loss of INR45.3b due to its weak operating performance and elevated provisions of INR97.6b. NII declined 15% QoQ to INR39.7b, as the domestic margin shrank 44bp QoQ to 2.5%. Other income declined 15% QoQ to INR17.1b, led by muted treasury gains. Operating expenses grew 16% QoQ to INR28.4b, led by wage-related 2 November 2018 provisions. Consequently, PPoP was subdued at INR 28.4b (-13% YoY). loss of INR69.2b, which was partly offset by tax credit of INR23.9b.
We take Punjab National Bank (PNB) out from Under Review and assign an Accumulate rating since (1) growth remains an issue for the bank even though (2) asset quality issues are largely behind the bank. Growth remains an issue with (a) Management having guided for domestic credit growth of ~10% for FY19, which is moderate (b) International book degrowth will continue (c) PNB does not sit on an adequate capital buffer with CAR standing at just 10.3% even after recent capital infusion of Rs28.16bn from the union government (d) PNB remains a candidate for RBI's Prompt Corrective Action regime given it still stands in breach of the relevant NPA threshold. Asset quality problems are largely behind the bank with (a) SMA exposure (which PNB considers its watchlist) standing at Rs80bnRs100bn (b) Exposure to various erstwhile restructuring dispensations (including 5/25)...
Punjab National Bank is India's first Swadeshi Bank which commenced operations on 12th April, 1895 from Lahore. Punjab National Bank had a network of 6,983 branches, 9,668 ATM's and 8,044 business correspondents as on Mar-18. The deposits and net...
