PNB Q4 Review - Performance Remains Weak On Several Counts: Nirmal Bang
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Nirmal Bang Report
Punjab National Bank’s Q4 FY21 performance continued to remain weak on several counts.
Cheap stock valuation is no solace in the face of weak balance sheet, capitalisation and high non performing assets.
We would much rather prefer State Bank of India in the public sector bank space given the 14-15% return on equity visibility and improving financial performance.
The banks' Q4 FY21 performance was disappointing with net interest income declining 16.5% QoQ due to ~Rs 16 billion of interest reversals (due to slippages) and interest-on-interest refund.
For FY21, the bank has delivered an return on equity of 2.3%.
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