BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.Nirmal Bang ReportPunjab National Bank Q2 FY24 performance was better than our expectations, with net interest income/pre-provision operating profit/profit after tax being at a variation of 4.4%/-3%/39% versus our estimates. Profit after tax grew by 327% YoY, led by strong loan growth of 13.8% YoY, 11 bps YoY/3 bps QoQ expansion in net Interest margin to 3.11% and lower credit cost. Opex cost was elevated due to increased provision for wage revision.With a healthy capital adequacy ratio of 15.1%, PNB is in a position to grow its loan book in double digits. The risk assessment model segment is seeing good traction. With lower credit/deposit ratio of 67.9%, excess statutory liquidity ratio of 6% and better risk density (risk-weighted assets to assets of 47.3%), the bank is in a good position to manage its NIM. We have raised our earnings estimates by 16.1%/32.2% for FY24E/FY25E after considering improvement in NIM, cost ratios and credit cost. However, return on assets /return on equity would still remain lower at 0.6%/9.3% for FY25E.We roll forward our valuation to September 2025E adjusted book value of Rs 98.3, valuing the bank at 0.75 times. We thus derive our target price of Rs 78 (Rs 71 earlier, valued at 0.75 times FY25E), which reflects an upside of 12%. Considering the recent rally in the stock price of PNB and lower return ratios, we maintain 'Accumulate'.Click on the attachment to read the full report:Ujjivan Small Finance Bank Q2 Results: Profit Rises 11%, Beats EstimatesDISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime.Users have no license to copy, modify, or distribute the content without permission of the Original Owner.