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Last Updated : Jun 22, 2020 11:08 AM IST | Source: Moneycontrol.com

PNB shares up 2% on asset quality improvement; Credit Suisse retains underperform rating

Credit Suisse is of the view that the bank's standalone performance has been better, led by loan growth adding that Q4 loss was on account of credit costs remaining elevated. It has however, maintained its underperform rating on the stock.

 
 
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Punjab National Bank (PNB) share price was up over 2 percent intraday on June 22 despite the PSU bank reporting fall in its standalone net loss at Rs 697.20 crore in the quarter ended March 2020, compared to Rs 4,749.64 crore of loss in the corresponding quarter of the previous fiscal year.

The stock price has gained 32 percent in the last 1 month and was quoting at Rs 35.25, up Rs 0.80, or 2.32 percent at 10:34 hours. It has touched an intraday high of Rs 36.00 and an intraday low of Rs 35.05.

It was also one of the most active stocks on NSE in terms of volumes with 3,23,32,561 shares being traded at 10:42 hours.

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The asset quality of the bank improved as the Gross Non Performing Assets (NPA) was at 14.21 percent for the quarter ended March 2020 versus 15.50 percent, YoY. The net NPA also reduced to 5.78 percent as against 7.18 percent as on December 2019 and 6.56 percent as on March 2019. Its provision coverage ratio (PCR) improved to 77.79 percent from 74.50 percent, YoY.

Domestic deposits of the bank increased by 4.9% YoY to Rs 6,86,493 crore and domestic advances increased by 1.1% YoY basis to Rs 4,95,045 crore.

Global research firm Credit Suisse is of the view that the bank's standalone performance has been better, led by loan growth adding that Q4 loss was on account of credit costs remaining elevated. It has maintained underperform rating on the stock and has cut target to Rs 29 from Rs 32 per share, according to a report by CNBC-TV18.

According to Moneycontrol SWOT Analysis powered by Trendlyne, PNB has zero promoter pledge with increasing revenue every quarter for the past 3 quarters.

Moneycontrol technical rating is bullish with technical indicators and moving averages being bullish.

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.​
First Published on Jun 22, 2020 11:08 am
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