Buy Punjab National Bank, target of Rs 666: Karvy

Karvy Stock Broking has recommended a buy rating on Punjab National Bank with a target price of Rs 666 in its July 21, 2008 research report. "In 1st Q FY09, we expect that the bank's advances and deposits would grow by around 18% each (Y-o-Y); the bank's NII would grow by 15% (Y-o-Y) to Rs 15.85 billion. We expect that the bank's fee-based income to report healthy growth of 13% (Y-o-Y) to Rs 3.1 billion, treasury gain would be muted. We estimate total net income to grow by 9.9% to Rs 19.9 billion. PNB's operating profit would record healthy growth of 12% (Y-o-Y) to Rs 10.5 billion due to marginal increase in operating overheads during the quarter."

"We estimate 11% (Y-o-Y) growth in bottomline to Rs 4.7 billion. At current price the stock quotes at 1.02x adjusted book value FY2010; we rate the stock as a BUY with a price target of Rs 666 at 1.51x adjusted book value FY2010," says Karvy's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

For further details click on attachment......