X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Punjab Nat. Bank: Earnings improve on lower slippages - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Jan 4, 2016 - Punjab Nat. Bank: Earnings improve on lower slippages

Punjab Nat. Bank: Earnings improve on lower slippages
Jan 4, 2016

Punjab National Bank (PNB) declared its results for the second quarter (2QFY16) and first half for the financial year (1HFY16). While the net interest income increased by mere 4.1% YoY for the quarter, the net profits moved up by 7.9% YoY. The profits for first half were down by 32.3% YoY. Here is our analysis of the results.

Performance summary

  • Interest income increased by 7.7% YoY in 2QFY16 and 5.8% in 1HFY16 on the back of 6.7% growth in advances.
  • Net interest margin (NIM) contracted to below 3% in 2QFY16 as well as 1HFY16.
  • Other income fell by 12.9% YoY in 2QFY16 on the back of reduction in fee based income and recoveries in written off accounts. For 1HFY16, other income was down 1.5% YoY.
  • Net NPA (non-performing assets) to advances declined to 3.26% in 2QFY16 from 3.99% in 2QFY15. Also, on sequential basis the NPAs have reduced for the quarter.
  • Capital adequacy ratio currently stands at 12.2% at the end of 2QFY16 as per Basel III norms.

Financial performance snapshot

Rs (m) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Interest income 114,621 123,450 7.7% 230,508 243,797 5.8%
Interest expense 73,109 80,231 9.7% 145,199 159,553 9.9%
Net Interest Income 41,512 43,219 4.1% 85,309 84,244 -1.2%
Net interest margin (%) 3.18% 2.97%   3.30% 2.93%  
Other Income 15,584 13,569 -12.9% 27,948 27,543 -1.5%
Other Expense 28,335 27,404 -3.3% 53,244 51081 -4.1%
Provisions and contingencies 17,679 18,821 6.5% 26,955 36935 37.0%
Profit before tax 11,081 10,564 -4.7% 33,058 23,772 -28.1%
Tax 5,328 4,354 -18.3% 13,253 10,354 -21.9%
Effective tax rate 48.1% 41.2%   40.1% 43.6%  
Profit after tax/ (loss) 5,753 6,210 7.9% 19,805 13,417 -32.3%
Net profit margin (%) 5.0% 5.0%   8.6% 5.5%  
No. of shares (m)         1963.6  
Book value per share (Rs)*         214.7  
P/BV (x)         0.5  

* (Book value as on 30th September 2015)

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the investor could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the investor could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the investor should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the investor could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

PNB SHARE PRICE


Aug 22, 2017 (Close)

TRACK PNB

PNB - WELLS FARGO COMPARISON

Compare Company With Charts

COMPARE PNB WITH

MARKET STATS