In an interview to CNBC-TV18, Ravikant Bhat, Research Analyst at IDBI Capital shared his readings and outlook on Punjab National Bank's Q4 numbers. He also expressed his views on State Bank of India's Q4 numbers will be released on Friday.
Gross non-performing assets as a percentage of gross advances fell to 12.53 percent from 13.7 percent and net NPAs fell to 7.81 percent from 9.09 percent on sequential basis.
Any improvement in net interest margin and lower slippages trend will be considered positive by the Street.
Ashwani Gujral of ashwanigujral.com suggests buying Union Bank of India, Bank of Baroda and PNB.
Here are a few top buzzing midcap stocks picked by CNBC-TV18's analysts in trade today. Subros, Blue Star, SBI, Kotak Mahindra Bank and PNB.
Vijay Chopra of Enoch Ventures suggests buying Jet Airways with a target of Rs 400.
Market experts expect consolidation to continue on Wednesday as the market seems to have priced in rate cut that is likely in forthcoming monetary policy on February 28.
Nifty PSU Bank gained half a percent after improvement in asset quality of Punjab National Bank, the country's third largest public sector lender by market capitalisation. SBI and Bank of Baroda are also going to announce their quarterly earnings on February 10.
Amtek Auto shares gained 11 percent after sources told CNBC-TV18 that the auto ancillary company is expected to close asset monetisation deals by March 2017 and is likely to raise USD 1 billion via asset monetisation that may result in debt reduction of Rs 6,000-7,000 crore.
Net interest income, the difference between interest earned and interest expended, fell 9.4 percent year-on-year to Rs 3,730.80 crore in October-December quarter, with negative loan growth of 1.8 percent at Rs 3.85 lakh crore.
Punjab National Bank shares gained nearly 3 percent after fall in slippages to Rs 4,800 crore and stable asset quality in Q3.
Key questions of analysts are that will bank's slippages continue to trend downwards; will recovery & upgrades continue; will credit cost fall further and will gross non-performing assets improve further.
Speaking to CNBC-TV18, Sanjaya Gupta, Managing Director of PNB Housing Finance, said the retail segment had driven loan growth in the third quarter.
Taking a cue from State Bank of India, other lenders including India‘s largest private sector lender ICICI Bank and state-owned Oriental Bank of Commerce and Andhra Bank, have announced cuts in their marginal cost R
MCLR-based lending system ensures that any future cuts are transmitted to the borrowers. So even if interest rates are cut in the future, borrowers will be able to get the benefits of the rate cuts.
Interest rate is one of the factors, and probably the most important one, while taking a loan. However, there are other things that are important to consider.
In an interview with CNBC-TV18 he advised investors to keep modest profit targets in light of the current market scenario and said that Bank Nifty is likely to underperform in the near term, where one should use the dips to buy and rallies to sell.
BHEL, Dr Reddy's Labs, Maruti, Lupin and Bharti Airtel are top gainers while HDFc, SBI, Bajaj Auto, ICICI Bank and Axis Bank are losers in the Sensex.
Punjab National Bank has cut the marginal cost of funds based lending rate (MCLR) by 0.05-0.10 percentage points for December across maturities of various tenors.
In conversation with CNBC-TV18, Usha Ananthasubramanian, MD & CEO of Punjab National Bank (PNB), said 200 branches of PNB have been working in double shifts.
Equity benchmarks started off the week on a strong note Monday, tracking relief rally in global peers after a clean chit to US presidential candidate Hillary Clinton in email probe. However, there was some profit booking in late trade as investors still maintained cautious stance ahead of US elections.
Lupin is up 7 percent while Sun Pharma, ICICI Bank, SBI and Adani Ports are gainers. Tata Motors is in red.
Country's second largest public sector lender Punjab National Bank (PNB) has reported a 11.5 percent degrowth in second quarter profit at Rs 549.4 crore but it was ahead of estimates due to treasury income. Asset quality also improved during the quarter but credit growth was muted.
Public sector lender Punjab National Bank's (PNB) second quarter profit is seen falling 32.8 percent year-on-year to Rs 417 crore, according to consensus estimates.