Views on Punjab National Bank 2QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research- Banking, Angel Broking) on Punjab National Bank 2QFY2016 Results:

"PNB reported moderate set of numbers for the quarter with PAT growth of 7.9% which was below consensus expectations. NII grew at a modest pace of 4.1% YoY due to tepid loan book growth of 6.7%. Other income de-grew 12.9% YoY which restricted the operating income growth at 1% YoY. Provisions increased by 6.5% YoY, which led to 7.9% YoY growth in PAT. On the asset quality front, the bank found some respite on asset quality with Gross NPA ratio decreasing by 11bp QoQ to 6.36%, while Net NPA decreased by 6bp QoQ to 3.99%.At CMP, the stock is trading at 0.6x FY2017E P/ABV. We recommend a NEUTRAL rating on the stock."

Shares of PUNJAB NATIONAL BANK was last trading in BSE at Rs.132.8 as compared to the previous close of Rs. 129.6. The total number of shares traded during the day was 1568272 in over 13927 trades.

The stock hit an intraday high of Rs. 135.2 and intraday low of 128.6. The net turnover during the day was Rs. 208147786.

Source : Equity Bulls

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