Punjab National Bank share price target

PNB's Q1FY16 results were better than expected, as stressedasset addition rate reduced substantially to Rs 34.8bn from Rs 132.5bn in Q4. P&L; numbers were better than expected with PAT at Rs 7.2bn (49% yoy) vs. our estimate of Rs 6.1bn. NII was...

Buy on dips to Rs 119 - Rs 126 for Target at Rs 147 in 1 quarter

PNB yet again disappointed with sharp rise in gross additions to stressed assets (~Rs 150bn; ~16% ann.)

PNB's Q4FY15 results were sharply below estimates as the earnings declined by 62% YoY (-60% QoQ) to Rs 3.1 bn. Bank reported a loss at PBT level whereas tax reversals led to earnings being positive. NII also declined by 5.3% YoY contributed by lower NIMs (due to interest income reversals) and slower advances growth. Advances grew by 9% YoY and 5% QoQ whereas NIMs declined by 42 bps to 2.79%.

expectation of Rs43.3bn/ Rs8.7bn. Stress asset addition was highest ever at Rs153bn (~4%ofadvances)whichwasinthenatureofRs74.2bnslippages(gross)andRs78.8bn ofrestructuring.Asaresultthebankhadtodolargeamountofinterestreversal,which...

Buy on dips to Rs 154 - Rs 161 for Target Rs 185 in 1 quarter

PNB results disappointed with no respite seen on asset quality (slippages at 6.2% ann.). This has significantly impacted the bank?s core revenue performance (NII was flat YoY vs. 11% loan growth).