Punjab National Bank Q4 Results Review - Earnings Traction Remains Healthy: 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 Ltd. reported a Q4 FY24 profit after tax of Rs 30.1 billion (5% beat), led by controlled provisions and robust other income. Opex was elevated and led to a 10% miss on pre-provision operating profit. Net interest income grew 9% YoY to Rs 104 billion (in line), while net interest margin contracted 5 bp QoQ to 3.1% (3.25% domestic). Loan book grew 12% YoY (2% QoQ) to Rs 9.3 trillion, led by a healthy traction in retail loans (3.9% QoQ growth). The credit/deposit ratio remained low at 68%, thus generating a lever to accelerate advances, unlike other banks. The current account and savings account ratio moderated 103 bp QoQ to 41.4% during the quarter. Slippages increased marginally to Rs 22 billion (1.1% annualized), while healthy recovery and upgrades enabled an overall decline in gross/net non-performing asset ratios to 5.73%/0.73%. Provision coverage ratio improved 254 bp QoQ to 88% in Q4 FY24. We raise our earnings per share estimates by 7%/5% for FY25/FY26, factoring in lower provisions, healthy other income, and steady margins. We estimate an return on asset/return on equity of 0.8%/12.8% in FY25 and 1.0%/14.5% in FY26. Reiterate Neutral with a revised target price of Rs 130 (premised on 1.1 times FY26E adjusted book value)..Click on the attachment to read the full report:.SBI, Asian Paints, SRF, Kalpataru Projects, Home First Finance Q4 Results Review: HDFC Securities .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 Q4 Results Review - Earnings Traction Remains Healthy: Motilal Oswal

Asset quality continues to improve; guides 1% RoA by end-FY25

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