MOSL: PUNJAB NATIONAL BANK (Neutral)-Asset quality stress persists-government infusion boost capital ratios
PUNJAB NATIONAL BANK: Asset quality stress persists; government infusion boost capital ratios
(PNB IN, Mkt Cap USD4.2b, CMP INR64, TP INR65, 1% Upside, Neutral)
- PNB reported 2QFY20 PAT of INR5.1b, dragged by higher provisions (+45% QoQ to INR29.3b) due to additional provisions made for fraud account. The bank continued with ~35% corporate tax regime and thus no adjustments were required in DTA.
- NII grew 7% YoY (3% QoQ) to INR42.6b (in-line), affected by muted loan growth. However, domestic NIM improved 3bp QoQ (-7bp YoY) to 2.4%.
- For 1HFY20, NII declined 3% YoY, while PPoP was largely flat. Overall, PAT stood at INR15.3b v/s a loss of INR54.7b for 1HFY19.
Punjab National Bank is a commercial banking group based in India. Co. is engaged in offering its customers personal, social, agricultural, international and corporate banking services. Co. specialized in offering commercial banking, retail banking, SME banking, rural banking, transaction banking, merchant banking, financial inclusion, credit syndication, treasury, internet & mobile banking services. Co. maintains over 6,300 branches and 7,900 ATMs across 764 cities. Co. has a banking subsidiary in the U.K., as well as branches in Hong Kong, Dubai and Kabul. Co. maintains representative offices in Almaty (Kazakhstan), Dubai, Shanghai (China), Oslo (Norway) and Sydney (Australia).
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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