The general evaluation of PUNJAB NATIONAL BANK (IN), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 14, 2022, the closing ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
PUNJAB NATIONAL BANK: Sees a recovery in operating performance; remains watchful of asset quality (PNB IN, Mkt Cap USD6b, CMP INR40, TP INR45, 12% Upside, Neutral) Slippages remain elevated PNB reported a healthy performance, supported by a pick-up in NII and lower opex, even as provisions stood stable sequentially. Business growth remains under pressure, with a sequential decline in loans/deposits. However, margin witnessed ~5bp QoQ improvement to 2.73%. Slippages stood elevated (~6.2%...
Summary United Bank of India - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights United Bank of India (UBI) is a provider of a range of retail, commercial, and international banking solutions to individuals, SMEs, non-resident Indians (NRIs), and corporates. Its offer...
Summary Marketline's United Bank of India Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by United Bank of India since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the org...
Q3FY20 result highlights PNB’s performance remains weak with the bank reporting a loss of Rs4.9bn in 3Q20 versus profit of Rs5bn in 2Q20 and Rs2.5bn in 3Q19. Despite recovery of Rs26bn from Essar Steel, weak core performance coupled with higher divergence related provisioning drove the loss. The bank has deferred provisions (mainly fraud related) of Rs16bn. If these were upfronted the loss would be higher. Slippages remain high at Rs74bn though lower than Rs81bn qoq. Net loans declined 2% yo...
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 ...
Q2FY20 result highlights PNB’s PAT of Rs5bn was better than our and street estimate of a loss of Rs15bn. The beat was on account of the bank not moving to the new tax rate. PAT declined 111% yoy and 50% qoq. Operating performance was weaker than expected with weak loan growth and a sharp increase in slippage. Further the bank has deferred provisions of Rs22.8bn. If the bank had taken these provisions in 2Q, it would have reported a loss. The bank wrote off only Rs6.5bn of the total provisio...
Q1FY20 result highlights PNB posted PAT of Rs10bn versus loss yoy and qoq. The delta came from a significant reduction in credit cost and high trading gains of Rs5bn. While the bank did post a profit, profitability remains weak with low loan growth, high NPLs and weak RoA. The bank has deferred provisions worth Rs7bn. In addition the bank will have to write-off Rs18.8bn in FY20 on Bhushan Power and Steel which was classified as fraud in 2Q. So total known but unrecognized provisions are high...
Q1FY20 result highlights PNB posted PAT of Rs10bn versus loss yoy and qoq. The delta came from a significant reduction in credit cost and high trading gains of Rs5bn. While the bank did post a profit, profitability remains weak with low loan growth, high NPLs and weak RoA. The bank has deferred provisions worth Rs7bn. In addition the bank will have to write-off Rs18.8bn in FY20 on Bhushan Power and Steel which was classified as fraud in 2Q. So total known but unrecognized provisions are high...
PUNJAB NATIONAL BANK: Modest operating performance; Lower provisions aid earnings (PNB IN, Mkt Cap USD4.5b, CMP INR68, TP INR75, 10% Upside, Neutral) PNB reported a surprise 1QFY20 PAT of INR10.2b (v/s our est. of INR1.9b loss; Bloomberg Consensus: INR3.25b loss), led by lower provisions of INR20.2b (-80% QoQ). NII declined 12% YoY (4% below our est.) to INR41.4b affected by 8% QoQ decline in advances. Domestic NIM declined 8bp QoQ (-54bp YoY) to 2.36%. Other income grew 6%/10% YoY/QoQ ...
Q4FY19 result highlights PNB posted a big loss of Rs 48bn versus PAT of 2.5bn qoq. There was a huge tax write back of 24bn driven by bad loan write-offs without which the loss would have been higher. Loans grew 6% yoy and 5% qoq while deposits grew 5% yoy and 4% qoq. NII grew 37% yoy on a low base, but declined 2% qoq. Core PPOP declined 3% qoq. Slippage rose sharply to Rs73bn versus 40bn qoq. Of the total slippage, divergence in GNPAs was 9bn, IL&FS was Rs18bn and the remaining was small ...
Punjab National Bank: Elevated provisions to remain a drag on earnings (PNB IN, Mkt Cap USD5.4b, CMP INR82, TP INR80, 2% Downside, Neutral) PNB reported loss of INR47.5b (our est. PAT of INR4.4b) for 4QFY19, dragged by higher provisions of INR100.7b (NPL provisions of INR91.5b). NII grew 37% YoY (-2% QoQ) to INR42b (5% miss) as domestic NIM declined 20bp QoQ to 2.44%. For FY19, NII/PPoP grew 15%/26% YoY, even as the bank reported full-year loss of INR99.8b (v/s loss of INR122.8b in FY18)....
Europe & the UK remain in focus The MSCI ACWI ex-U.S. is breaking topside its nearly 14-month downtrend and above key resistance. The move is being fueled by improvements throughout most of Europe and the UK, along with strength in China over the past 2-3 months. We believe these positive developments are supportive of higher equity prices moving forward. As a result of these and several other observations highlighted below, our outlook on global equities is positive. • Europe & the UK. As h...
Q3FY19 result highlights PNB posted a small PAT of Rs2.5bn versus expectations of a loss. The beat was due to significantly low credit cost. . Credit cost ex Nirav Modi and a small fraud fell to 0.4% from 7.3%. At 0.4%, credit cost is the lowest amongst corporate banks we track. We believe this level of low credit cost is unsustainable. Asset quality improved with slippage declining to Rs39bn from Rs56bn qoq. Loans declined 4% yoy and were flat qoq. Retail loans grew 15% yoy, MSME 9% while o...
Punjab National Bank: Recoveries & upgrades outlook strong; Slippages trajectory to improve further (PNB IN, Mkt Cap USD4b, CMP INR75, TP INR80, 6% Upside, Neutral) Punjab National Bank’s (PNB) management hosted an analyst meet to discuss the third quarter results performance and the outlook ahead. Key takeaways: Domestic loan growth to gain more traction, margins to improve further Domestic advances increased 6.7% YoY, as retail loans grew by 15% YoY (+5.6% QoQ), primarily driven by h...
Punjab National Bank: Asset quality improving gradually; expect earnings turnaround over FY19-21 (PNB IN, Mkt Cap USD3.9b, CMP INR74, TP INR80, 9% Upside, Neutral) After posting losses in the previous three quarters, PNB reported net profit of INR2.5b in 3QFY19, led by lower provisions of INR27.5b (38% YoY /72% QoQ decline). NII increased 8% YoY to INR42.9b (6% beat), led by 6.7% YoY growth in gross domestic advances and 2.64% improvement in margins. Operating expenses grew 6% QoQ to IN...
Q2FY19 result highlights PNB’s posted net loss of Rs45bn higher than the loss of Rs9bn in 1Q. The result was weak on all counts – with decline in NIMs, high opex, sharp increase in credit cost even ex jewellery fraud, high MTM provisions due to fresh provisions this quarter plus amortization of the previous quarters and decline in core fees. The loss would have been higher had it not been for the unamortized charges of Rs20bn. In two transactions, the government has infused a total of Rs82bn...
Q2FY19 result highlights PNB’s posted net loss of Rs45bn higher than the loss of Rs9bn in 1Q. The result was weak on all counts – with decline in NIMs, high opex, sharp increase in credit cost even ex jewellery fraud, high MTM provisions due to fresh provisions this quarter plus amortization of the previous quarters and decline in core fees. The loss would have been higher had it not been for the unamortized charges of Rs20bn. In two transactions, the government has infused a total of Rs82bn...
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