Punjab National Bank share price target

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...