PNB Q4 Review - Performance Remains Weak On Several Counts: Nirmal Bang
Signage for Punjab National Bank (PNB) is displayed outside a branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

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%.

Click on the attachment to read the full report:

Nirmal Bang PNB - Q4FY21 Result Update - 8 June 2021.pdf

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