Punjab National Bank Q1 Review - Gradually Looking Better: Prabhudas Lilladher
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Prabhudas Lilladher Report
Punjab National Bank's earnings were higher than estimates at Rs 10.2 billion (our estimate: Rs 6.1 billion) on back of better set of operating internals i.e net interest income growth of 7% YoY and de-growth in opex by 8% YoY drove pre provision operating profit by 15% YoY/8% QoQ.
Punjab National Bank's provisions still remain high with annualised rate of 2.5% of loans but given the context of Covid-19, it has done better than private peers and maintained provision coverage ratio of 63%.
Although, slippages of Rs 82 billion remain on higher side and scattered through retail/micro, small and medium enterprise and corporate and run-rate in near term could continue given stress in MSME.
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