Views on Punjab National Bank 4QFY2016 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking) on Punjab National Bank 4QFY2016 Results:

"PNB has come out with numbers much lower than our and street's expectations. Provisions went up 2.8x QoQ to INR 10,485 cr and consequently the bank reported a loss of INR 5,367 cr. Asset quality deteriorated substantially during the quarters with a 62.6% rise QoQ rise and stood at a 12.9% vs 8.47% QoQ. In absolute term GNPAs went up by INR 21,480 cr QoQ.

This is by far the highest ever increasing in NPA by any bank which has reported numbers so far. The point of worry is that the bank believes the cleaning up exercise of balance sheet is not over. We believe pain to continue in FY17 also, with regards to asset quality. We have a NEUTRAL rating on the stock."

Shares of PUNJAB NATIONAL BANK was last trading in BSE at Rs.77.45 as compared to the previous close of Rs. 76.75. The total number of shares traded during the day was 947789 in over 4431 trades.

The stock hit an intraday high of Rs. 77.8 and intraday low of 76. The net turnover during the day was Rs. 72927213.

Source : Equity Bulls

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