Punjab National Bank Q3 Results Review - PPoP Inline; Lower Provisions Drive Earnings Beat: 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, with a 19% beat on profit after tax amid 23% lower provision versus our estimate. Profit after tax surged 254% YoY to Rs 22.2 billion, while net interest income grew 12% YoY (in line) to Rs 103 billion as net interest margins improved 4 basis points QoQ to 3.15% in Q3 FY24. Loan book grew at a healthy pace of 15% YoY (3% QoQ) to Rs 9.2 trillion, led by a healthy traction in corporate. Retail loans declined 1.8% QoQ. Deposit growth was relatively low at 9% YoY/1% QoQ to Rs 13 trillion. Punjab National Bank's credit/deposit ratio was relatively low at 69%, giving levers to accelerate advances unlike other banks. The current account and savings account ratio increased 32 bp QoQ to 42.5%. Slippages dipped to Rs 18 billion (0.9% annualised) enabling sharp 72 bp/51 bp QoQ decline in gross /net non-performing asset ratios to 6.24%/0.96% while provision coverage ratio rose 540 bp QoQ to 85%. We upgrade our earnings per share estimates by 15%/5% for FY24/FY25, factoring in lower LLP and healthy margins. We estimate return on asset/return on equity of 0.7%/11.0% in FY25 and 0.9%/13.1% by FY26. Retain Neutral with a target price of Rs 100 (one time September-25E adjusted book value)..Click on the attachment to read the full report:.Punjab National Bank Q3 Results: Profit Rises Threefold On Lower Provisions.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 Q3 Results Review - PPoP Inline; Lower Provisions Drive Earnings Beat: Motilal Oswal

Asset quality continues to surprise positively

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Punjab National Bank Q3 Results Review - PPoP Inline; Lower Provisions Drive Earnings Beat: Motilal Oswal

Asset quality continues to surprise positively

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