Punjab National Bank 3QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research- Banking, Angel Broking) on Punjab National Bank 3QFY2016 Results:

"PNB has come out with a very disappointing set of results for the quarter. Though results were expected to be bad however, the quantum of rise in Gross NPAs has surprised us. The Gross NPAs has gone up by 37.7% QoQ and now stands at 8.47% vs 6.36% in 2QFY16. This 210 bps rise in GNPAs doesn't seem to be the end of the pain as the bank is expected to report similar set of rise in NPA levels during Q4FY16. Net NPAs stood at 5.86 % vs 3.99% a rise of 187 bps QoQ. During the quarter the bank recognised loans worth over INR 5,000cr from the RBI's Asset Quality Review accounts as NPA and hence the overall rise in NPAs. We don't expect asset quality to stabilise any time soon for the bank. We maintain our NEUTRAL view on the stock."

Shares of PUNJAB NATIONAL BANK was last trading in BSE at Rs.87.85 as compared to the previous close of Rs. 94.35. The total number of shares traded during the day was 3961207 in over 26108 trades.

The stock hit an intraday high of Rs. 94.7 and intraday low of 87.35. The net turnover during the day was Rs. 357198205.

Source : Equity Bulls

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