Saturday, July 26, 2014

Views on #Punjab National Bank(PNB) results

Better than expected NIM helped PNB in clocking healthy growth in NII (12.1% YoY). Write-back on investment depreciation (Rs.3.8 bn) as well on standard asset portfolio (Rs.0.9 bn) helped in reporting better than expected net income. Asset quality remained stable QoQ while new impairment (new restructuring + gross slippage) remained at elevated levels (5% of advances). Its stressed book consists of ~13% of loan book, higher than the industry mean, which makes us slightly cautious on the stock.

By Saday Sinha, Banking Analyst, Kotak Securities