Views on Punjab National Bank 1QFY2017 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking) on Punjab National Bank 1QFY2017 Results:

"Punjab National Bank reported a mixed set of results for the quarter. While it was back to profit after reporting huge loss in Q4FY16, the large part of the PAT was from other income, driven by trading gains. While GNPAs further increased to 13.75% from 12.9% in Q4FY16, the level of absolute rise in GNPA was limited to only INR 836 cr compared to INR 21,480 cr in Q4FY16. Slippages remained elevated at INR 7533 cr and seems will remain higher side for few more quarters.

Recovery at INR 6,000 cr was much higher than expected while up gradation remained encouraging at INR 1181 cr, this helped in containing sharp rise in GNPAs. While there is some respite in terms of asset quality Net NPAs of 9.16% indicates more provisions to be done in the quarters to come and hence bottom-line growth will remain under pressure. After seeing sharp rise in the stock in the last few months the upside seems capped and hence we have a NEUTRAL rating on the stock."

Shares of PUNJAB NATIONAL BANK was last trading in BSE at Rs.123.45 as compared to the previous close of Rs. 129. The total number of shares traded during the day was 2517395 in over 13532 trades.

The stock hit an intraday high of Rs. 129.35 and intraday low of 123.05. The net turnover during the day was Rs. 316634942.

Source : Equity Bulls

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