Punjab National Bank share price target

NII rose 22.8% QoQ in Q3FY22, led by a 54bps QoQ expansion in NIM. Operating income rose 9.0% QoQ to Rs. 10,504cr; PAT down 2.0% QoQ owing to higher tax outgo and marginally higher provisions. With improved outlook of certain sectors such as infra (incl. telecom) and metal & mining industry, we expect further strengthening of bank's financials with gradual recovery expected in accounts marked as NPAs. Bank has reported steady improvements in its asset quality along with reduction in slippages. However, the NPA levels remain high....

With synergies coming in post amalgamation and improvement in efficiencies, the Bank was able to deliver a decent operational performance. However, asset quality still remains a concern considering high exposure to Agri and MSME sectors. Hence, with a cautious view on outlook, we reiterate our HOLD rating on the stock with a revised target price of Rs. 42 based on 0.4x FY23E P/BV. Significant cost reduction support margins For Q1FY22, Interest Income dropped 8.3% YoY to Rs. 18,921cr as yield from advances...

PNB earnings were higher than estimates at Rs10.2bn (PLe: Rs6.1bn) on back of better set of operating internals i.e NII growth of 7% YoY & de-growth in opex by 8% YoY drove PPOP by 15% YoY/8% QoQ. Provisions still remain high with annualized rate of 2.5% of loans but given the context of COVID, it has done better than private peers and maintained PCR of 63% (80% incl. technical w.offs). Although, slippages of Rs82bn remain on higher side and...

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)....