Punjab National Bank may hit Rs 155: Nitin Kumar

Nitin Kumar, Analyst at Prabhudas Liladher told CNBC-TV18, "Punjab National Bank (PNB) has been one of the worst affected in terms of asset quality with such a large restructured book which is close to 11 percent of loans and 6 percent of gross non-performing loans(GNPLs). For that reason we have a very modest price target on the stock at Rs 155 which is what we put it on the result day." "Our rating has been positive; we have been maintaining an accumulate stance and incrementally what could drive the rerating not just for PNB but for most PSU banks is that there are whole lot of triggers for next four to five months. It may start on as early as September end with the RBI policy wherein there could potentially be a rate cut. Governor has already indicated that he would like to wait as to how the Fed rate hike thing goes and the inflation anyway appears to be a lot better. Expectations are much higher and then usual banking credit growth may pick up in the second half which may drive outperformance of PSU banks," he said."The Gyan Sangam 2 which the government has already announced the dates for, that will be another trigger which can support the performance of these PSUs. So, for all these reasons there are too many riggers right now over the next four to five months."