Punjab National Bank, incorporated in the year 1969, is a banking company (having a market cap of Rs 44374.39 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 22815.41 Crore, up .16 % from last quarter Total Income of Rs 22779.56 Crore and down -7.73 % from last year same quarter Total Income of Rs 24727.72 Crore. The bank reported net profit after tax of Rs 1168.33 Crore in latest quarter.
Investment Rationale
PNB reported a healthy performance, supported by a pick-up in NII, higher other income, and lower opex, even as provisions stood stable QoQ. Business growth remains muted, however margin witnessed a sequential uptick. The bank expects growth to pick up, led by RAM segments, while the Corporate book too would undergo a gradual recovery. Asset quality was largely stable, despite higher slippages, supported by recoveries and upgrades. SMA 1 and 2 book stands elevated at 3.9% of loans, while restructured book, at 2.02% of loans (expect a further restructuring of INR15-20b), keeps the brokerage watchful over the near term. It estimates a RoA/RoE of 0.6%/8.8% by FY23E.
Promoter/FII Holdings
Promoters held 32.6 per cent stake in the company as of June 30, 2021, while FIIs held 25.9 per cent, DIIs 3 per cent and public and others 38.6 per cent.
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