Punjab National Bank Q3 Review - Return Ratios To Remain Lower Despite Pick-Up In Recoveries: Nirmal Bang

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..Nirmal Bang Report.Punjab National Bank Q3 FY24 performance was better than our expectations, with net interest income/pre-provision operating profit/profit after tax coming in at a variation of 1.1%/-5.9%/6.8% versus our estimates.Profit after tax grew by 253.5% YoY, led by loan growth of 12.9% YoY, 3 basis points QoQ expansion in net interest margin to 3.15% (aided by re-pricing and Rs 7 billion impact of interest recoveries on non performing assets recovered) and lower credit cost.Despite AS-15 provision of Rs 3.2 billion and wage revision provision of Rs 8 billion (considering 17% hike and increase in pension component), staff costs were stable QoQ and down by 6.5% YoY due to base effect of AS-15 provisions done earlier.After incorporating Q3 FY24 results and assuming further asset quality improvement due to continued recoveries from gross non-performing assets and written off accounts, we have raised our earnings estimates by 3.4%/25.4% for FY24E/FY25E.However, despite these upward revisions, return of assets/return of equity would still remain lower at 0.8%/11.5% for FY25E and 0.8%/11.6% for FY26E..Click on the attachment to read the full report:.Marico Q3 Results: Profit Rises 16%, Revenue Dips On Weak Rural Demand.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 Review - Return Ratios To Remain Lower Despite Pick-Up In Recoveries: Nirmal Bang

Improvement in profitability aided by lower credit cost.

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Punjab National Bank Q3 Review - Return Ratios To Remain Lower Despite Pick-Up In Recoveries: Nirmal Bang

Improvement in profitability aided by lower credit cost.

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