Punjab National Bank - Balance Sheet Continues To Strengthen; NIMs To Remain Broadly Stable: Motilal Oswal

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Punjab National Bank has been reporting a healthy performance, with earnings driven by steady revenue growth and controlled provisions. With a comfortable CD ratio, the bank is well positioned to grow its loan book with continued focus on high-yielding RAM segments. MCLR repricing and effective CD ratio management are expected to cushion margins against elevated funding costs. Asset quality continues to see a sharp improvement as recoveries and w-off continue to be healthy. Provision coverage ratio has thus improved to 88% and we estimate the net non-performing asset ratio to improve further. Special mention account overdue (with loans over Rs 50 million) remains under control at 0.15% of domestic loans, while the bank continues to guide for robust recoveries at ~two times of slippages. PNB expects the credit cost and slippages to be contained at <1% and projects RoA of 1% by FY25 end. With a strategic focus on strengthening its balance sheet and targeting a further reduction in the NNPA ratio to 0.5%, PNB is poised to sustain profitability and we estimate a 44% CAGR in earnings over FY24-26. We reiterate our Neutral rating with a target price of Rs 130 (premised on 1.1 times FY26E adjusted book value)..Click on the attachment to read the full report:.Ambuja Cements - Announced Acqusition Of Penna Cement: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Punjab National Bank - Balance Sheet Continues To Strengthen; NIMs To Remain Broadly Stable: Motilal Oswal

Asset quality remains steady; recoveries and upgrades will continue to outpace slippages

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