Punjab National Bank Q2 Results Review - Strong Quarter; Asset Quality Improves Sharply: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Punjab National Bank reported a healthy quarter characterized by a sharp decline in provisions and healthy loan growth. Net interest income stood broadly flat QoQ, while net interest margin contracted 15bp QoQ. Pre-provision operating profit witnessed a slight miss amid higher opex in Q2 on account of the creation of AS-15 employee provision. Management aims to increase the mix of RAM portfolio, which should result in steady margins. Asset quality continues to surprise with PNB seeing healthy recoveries and upgrades, resulting in the PCR to improve to 90%. SMA overdue (with loans over Rs 50 million) saw a marginal increase to 0.2% of domestic loans, while the recovery guidance continues to be at two times of slippages. Thus, it guided the GNPA ratio to decline to ~3.5-3.75% (earlier guidance of 4%), while credit cost is guided at 0.25-0.3% (earlier guidance at 0.5%). We raise our EPS estimates by 8.9%/ 4.9% for FY25/FY26, factoring in a sharp reduction in provisions, we estimate an RoA/RoE of 1.0%/14.1% in FY26. Reiterate Neutral with a target price of Rs 120, based on 1.0 times FY26E adjusted book value..Click on the attachment to read the full report:.Federal Bank Q2 Results: Profit Rises 11% To Rs 1,057 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Punjab National Bank Q2 Results Review - Strong Quarter; Asset Quality Improves Sharply: Motilal Oswal

The brokerage reiterates Neutral rating on the stock with a target price of Rs 120, based on 1.0 times FY26E adjusted book value.

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Punjab National Bank Q2 Results Review - Strong Quarter; Asset Quality Improves Sharply: Motilal Oswal

The brokerage reiterates Neutral rating on the stock with a target price of Rs 120, based on 1.0 times FY26E adjusted book value.

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