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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.
Net Interest Income is expected to increase by 1.7 percent Q-o-Q (down 13 percent Y-o-Y) to Rs 3760.1 crore, according to KR Choksey.
Net Interest Income is expected to increase by 2.8 percent Q-o-Q (down 12 percent Y-o-Y) to Rs 3802.6 crore, according to Centrum.
Andhra Bank's MD & CEO Suresh Patel says large accounts particularly in the construction and iron and steel are major contributors to slippages.
After a consistently dissapointing performance, the earnings numbers for Punjab National Bank (PNB) look better than expected, says Pankaj Sharma, Equirus Securities.
In an interview to CNBC-TV18, Ananthasubramanian says the bank's savings deposits grew 14 percent year-on-year during the quarter. Also, the share of Current Account and Savings Account (CASA) funds has risen to 41.4 percent vs 38.9 percent on a YoY basis
Key factors to watch out for would be slippages, net interest margin, recovery and upgradations for the quarter.
Net interest income is expected to increase by 24.5 percent Q-o-Q (down 16 percent Y-o-Y) to Rs 3446.1 crore, according to KR Choksey.
Gaurang Shah of Geojit BNP Paribas is positive on SBI, but hints at some more stress for the lender in the next two quarters.
Expect the bank's loan book to grow by 10 percent going forward, says Usha Ananthasubramanian, MD & CEO, Punjab National Bank.
Hemindra Hazari, hemindrahazari.com, said most of the bad debts being identified are from large corporates. But he feels the bad debts will slowly start coming from the small and medium-sized enterprises (SME).
Overall PNB's asset quality performance is likely to be weak as analysts expect slippages to remain elevated. Analysts say credit cost is also expected to remain elevated on account of stressed assets addition.
SP Tulsian in an interview to CNBC-TV18 shared his fundamental view on stocks that posted earnings like TVS Motors, ICICI Bank, MRF, CCL and others.
Speaking to CNBC-TV18, Usha Ananthasubramanian, MD & CEO of the bank says that while the process to clean up books has begun, lot of bad asset pain still remains.
Net interest income, the difference between interest earned and interest expended, may increase 1.26 percent to Rs 4,286 crore in quarter ended December 2015 compared to Rs 4,233 crore in year-ago period.
The bank's profit increased by 8 percent year-on-year (YoY) to Rs 621 crore, impacted by lower other income, slow growth in operating profit & net interest income and increase in provisions.
Net interest income, the difference between interest earned and interest expended, may increase 1.2 percent to Rs 4,202 crore from Rs 4,151.2 crore in same period. It could be impacted by interest reversals.
Gauri Shankar, MD & CEO, Punjab National Bank (PNB) spoke to CNBC-TV18 post quarterly result announcement.
The bank's first quarter net profit falling 48.7 percent year-on-year to Rs 721 crore but its asset quality improved sequentially.
Net-interest income is expected to rise by 6 percent quarter-on-quarter (down 8.2 percent year-on-year) to Rs 4018.5 crore, according to Motilal Oswal.
Analysts expect provisions to decline on sequential basis but if provisions do not fall that that may be taken very negatively on the street. Provisions in Q4FY15 had spiked 79 percent Y-o-Y to Rs 3,834 crore.
"We expect around 15 percent year-on-year profit after tax (PAT) growth for private banks with stable pre-provision operating profit (PPOP) growth. PSUs will likely have a tough quarter operationally with elevated asset quality stress along with pressure on net interest margins," said Nomura.
According to Parag Jariwala, VP-Institutional Research, Banking and Financial Services, Religare Capital there is no reason to be excited with Bank of Baroda slippage number because it could be an aberration and the total stress formation is still high for the bank.
The state-owned bank does not have even a single big account in pipeline as far as restructuring is concerned.
Punjab National Bank (PNB) has reported a disappointing set of numbers in their fourth quarter with net profit falling 61.9 percent to Rs 307 crore on a year-on-year basis.