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Punjab National Bank (PNB) is expected to report a 8 percent growth each in net profit and net interest income for the quarter ended March, according to the average of estimates of analysts polled by CNBC-TV18. The PSU bank will announce its earnings on Tuesday.
The bank's gross non-performing assets (NPA) rose to 33.8 percent on yearly basis (up 7 percent sequentially) to Rs 22,211 crore. The net NPA grew 51.8 percent Y-o-Y (up 18.7 percent Q-o-Q) to Rs 13,788 crore in the quarter gone by.
The bank's net interest income (NII) remained almost flat at Rs 4,233 crore during October-December quarter compared to Rs 4,221 crore in same quarter last year.
Punjab National Bank's third quarter profit is expected to surge 23.2 percent year-on-year to Rs 930 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Worsening asset quality is a worry indeed, but Jignesh Shial, research analyst, IDBI Capital Markets says what is more worrying is that these banks are not growing, putting pressure on margins as well.
Punjab National Bank missed street expectations on all parameters in the second quarter ending September 2014 owing to higher employee provisions this quarter and worsening asset quality.
Punjab National Bank missed street expectations on all parameters with the second quarter net profit rising 13.8 percent as against expected growth of 142 percent as provisions remained at elevated levels
Net interest income is expected to increase by 1.9 percent Q-o-Q (up 11.1 percent Y-o-Y) to Rs 4461.6 crore, according to ICICIdirect.com.
Net interest income is expected to increase by 1.2 percent Q-o-Q (up 10.4 percent Y-o-Y) to Rs 4432.7 crore, according to Motilal Oswal.
Net interest income, the difference between interest earned and interest expended, may rise by 10 percent to Rs 4,421 crore in the quarter ended September 2014 compared to Rs 4,015.5 crore in corresponding quarter of last fiscal.
Rakesh Sethi, ED, Punjab National Bank says after the end of the second quarter, he had said that the worst is over for the bank. His expectations have come through and slippages fell from Rs 3,500 crore in Q1, to Rs 3,000 crore in Q2 to just Rs 1,505 crore this quarter.
Review of December quarter results reveal that bad loans of PSU banks seem to have stabilised. Latha Venkatesh of CNBC-TV18, reports on details of NPA and loan books of PSU Banks in third quarter of FY14.
It was a heavy day of financial earnings today. Couple of banks came out and showed interesting set of numbers
Vaibhav Agrawal of Angel Broking says despite lower than expected net profit, the bank surprised on the positive by posting around Rs 700-800 crore improvement in non-performing assets. Even combining the two factors, the numbers look fairly decent.
Public sector lender Punjab National Bank (PNB) will announce its third quarter (October-December) earnings today. Asset quality is the other key concern for the bank. After the September quarter earnings, the management guided for lower slippages and restructured assets in October-March period of FY14, but analysts are still skeptical.
Punjab National Bank is on my radar, which is a part of the Bank Nifty as well as the Nifty, which will be coming out with its numbers today. Here's Ekta Batra of CNBC-TV18 with what to expect from this quarter‘s number.
Market experts say that quarterly earnings posted by Punjab National Bank were way below estimates. They also cite high provisions as being the problem for the mismatch.
KR Kamath, CMD, Punjab National Bank expect loan recast pipeline to taper down going forward.
Analysts expect weak asset quality during September quarter. Slippages are expected to be lower on sequential basis, but will be elevated.
Net interest income of Punjab National Bank is expected to increase by 0.8 percent Q-o-Q (up 7.9 percent Y-o-Y) to Rs 3,937.8 crore, according to Motilal Oswal.
A spurt of loan defaults and lower net interest income in the three months that ended June triggered the second consecutive drop in quarterly profit for SBI, sending its shares to their lowest since December 2011
According to Rakesh Sethi, the term deposit of the bank is also growing at good 27 percent, whereas the credit growth is muted to an extent and therefore, it does not require more liquidity at the moment
With stress persisting for a longer time, a lot of NPLs sitting on the fence can get converted into bad loans, thus putting pressure on asset quality
State-owned Punjab National Bank (PNB) is likely report a 4 percent fall in its first quarter (April-June, FY14) at Rs 1,196 crore. Net interest income or the difference between interest earned and paid out, however, may rise by similar 4 percent to Rs 3,829 crore, according to an average of poll estimate by CNBC TV18.
Motilal Oswal expects Punjab National Bank to report a 2.1 percent degrowth quarter-on-quarter (degrowth of 11 percent year-on-year) in net profit at Rs 1108.1 crore.