Credit cost stood at 2.05%, however on a pro forma basis, the credit cost was ~2.5% at the end of the quarter. Guidance ~1.25%-1.50% for credit cost in FY22 been given by the management. Given the increasing default rates, uncertainty around asset quality post amalgamation, we continue to remain cautious on the stock in the...

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...

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...

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,...

Modest operating performance; Lower provisions aid earnings Motilal Oswal values your support in the Asiamoney Brokers Poll 2019 for...

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...

PNB is northern India-based bank with over 7001 branches, most of which are in..

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 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.

Punjab National Bank Q1FY19 results Comment Punjab National Bank Q1FY19 results Comment

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...

NII fell to Rs. 3063.39 Cr in Q4FY18 compared to Rs. 3988.7 Cr in Q3FY18. Punjab National Bank Q4FY18 Results Comment

PNB reported operating loss of INR4.5b due to tepid revenue lines and sharply higher operating expenses (on account of AS-15 provisions). NII declined 23% QoQ (-17% YoY), while other income fell ~49% QoQ. Provisions of INR203.5b (significantly higher) led to PBT loss of INR208b. PBT loss was offset by tax credit of INR73.8b, resulting in a loss of INR134.2b. Slippages spiked to INR309.9b (27.4% annualized) on account of one fraud account related to gems and jewellery (INR75.8b) and the RBI's revised stressed asset framework (INR102.37b). The bank further reported a divergence of INR22.07b (GNPA). GNPL/NNPL ratios, thus, increased sharply to 18.4%/11.2%, with absolute GNPA/NNPA up 51%/43% QoQ.

PNB's officials issued a series of fraudulent Letter of Undertaking (LoUs) to overseas branches of Indian banks in favour of three companies (run by Nirav Modi namely Solar Exports, Steller Diamonds and Diamond R Us) for availing buyers' credit. In normal course, PNB should have remitted the funds to the overseas banks and recovered the amount from Nirav Modi on the due date. However, money was never repaid and to cover these dues, more such LoUs were issued. Notably, the whole operation remained undetected as SWIFT, the messaging service via which the LoUs were sent, was not linked to PNB's core banking system (CBS). In general, the client has to give around 100% cash margin against the LoU...

Punjab National Bank (PNB) has reported to exchanges about fraudulent and unauthorised transactions in its Mumbai branch where the liability can run up to $1.7 billion (bn) (| 11300 crore). The estimated value of this fraud is equivalent to ~27% of net worth as of FY17. Select account holders, related to the jewellery sector, colluded with officials to obtain letter of understanding (LoU) to receive funds from the overseas branches of Indian banks. The aforesaid LoUs were issued by officials without the prerequisite...

PNB reported PBT loss of Rs 2.2 bn on higher provisions, despite one-time gain of Rs 12.3 bn on stake sale in PNB Housing Finance. However, profit came in at Rs 2.3 bn (up 11.1% YoY) on tax write-back, which was lower than our and consensus estimates.

Punjab National Bank Q3FY18 results comment NII fell to Rs. 3988.7 Cr in Q3FY18 compared to Rs. 4015.18 Cr in Q2FY18. The NII had been increasing from Q1FY18 to Q2FY18. The NII decreased in Q4FY17 and Q3FY18.

ICICI Securities Ltd | Retail Equity Research Asset quality remained healthy with flattish GNPA at | 57519 crore & NNPA at | 34076 crore. Led by growth, GNPA & NNPA ratio declined by 119 bps & 89 bps to 12.11% & 7.55%, respectively. Slippage came lower at ~| 3174 crore vs | 3460 crore in Q2FY18 NII growth came at 6.9% YoY to | 3989 crore. Other income grew 22.6% YoY to | 3082 crore, led by stake sale in home loan subsidiary. Advances surged 17% YoY, led by 22% YoY growth in domestic book...