ADVERTISEMENT

Punjab National Bank Q2 Review - Weak Operating Performance; Stable Asset Quality: Motilal Oswal

Punjab National Bank Q2 Review - Weak Operating Performance; Stable Asset Quality: Motilal Oswal

A cyclist rides past a Punjab National Bank (PNB) branch on a near-empty street in Mumbai, Indi. (Photographer: Dhiraj Singh/Bloomberg)
A cyclist rides past a Punjab National Bank (PNB) branch on a near-empty street in Mumbai, Indi. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Punjab National Bank delivered a weak operating performance in Q2 FY22 as the bank was impacted by a decline in net interest income with domestic margins contracting sharply by 36 basis points QoQ, while net earnings grew 78% YoY, aided mainly by tax reversals.

The total recovery from the Dewan Housing Finance Corporation Ltd. resolution was Rs 12.7 billion and was predominantly utilised for making provisions for one large corporate account (SREI Infra).

On the business front, loans/deposits grew 2% sequentially. On the asset quality front, slippages were elevated due to two large corporate accounts which included slippage of Rs 28 billion from SREI Infra.

However, higher recoveries and upgradations supported the Punjab National Bank’s asset quality with its gross/net non-performing asset ratio declining by 70 basis point/35 bps sequentially.

Click on the attachment to read the full report:

Motilal Oswal PNB Q2FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.