Punjab National Bank -Strong core performance; slippages come down :Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Punjab National Bank

Strong core performance; slippages come down

ACCUMULATE

CMP: Rs1,103                                        Target Price: Rs1,270

---

n     PNB reports excellent results with NII of Rs31.2bn (19% yoy), core OP of Rs29bn (31% yoy) and slippages at Rs11.8bn (vs Rs12.5bn in Q4FY11). Still net NPAs commendably remain flat

n     NIMs maintained at 3.84%, down just 7bps qoq. CASA maintained at 37%, down 100bps qoq. Overall fees grew by 19% yoy (6% qoq).

n     Slippages lower at Rs11.8bn driven by lower slippages from restr. assets. Total slippages from restr. assets at 12.6%. Strong profits used for raising PCR to 74.3% (73% in Q4FY11)

n     With NPAs coming under control, strong topline growth to also reflected in bottomline growth. Valns not unreasonable at 1.5x FY12E/1.2x FY13E ABV with average RoAs of 1.3%