Punjab National Bank (abbreviated as PNB) is an Indian public sector bank based in New Delhi. The bank was founded in May 1894 and is the third largest public sector bank in India, both in terms of its business volumes and its network. The bank has over 180 million customers, 12,248 branches, and 13,000+ ATMs.
PNB has a banking subsidiary in the UK (PNB International Bank, with seven branches in the UK), as well as branches in Hong Kong, Kowloon, Dubai, and Kabul. It has representative offices in Almaty (Kazakhstan), Dubai (United Arab Emirates), Shanghai (China), Oslo (Norway), and Sydney (Australia). In Bhutan, it owns 51% of Druk PNB Bank, which has five branches. In Nepal, PNB owns 20% of Everest Bank, which has 122 branches. PNB also owns 41.64% of JSC (SB) PNB Bank in Kazakhstan, which has four branches.
Quarterly Earnings Walkthrough
Punjab National Bank on Monday registered a 43% fall in its consolidated net profit to ₹715 crore for the December 2022 quarter as compared to a consolidated net profit of ₹1,249 crore in the previous year ago period. Sequentially, the net profit was up by 44% from ₹496 crore in second quarter which ended in September 2022.
The net interest income which is the difference between interest earned and interest expended, has risen by 18% to ₹9,180 crore as compared to ₹7,803 crore in the corresponding quarter of the previous fiscal.
Net interest margin (NIM) has risen to 3.16% in Q3FY23 from 2.93% in the corresponding quarter of the last year.
The gross advances of PNB were up by 13.43 per cent to ₹856,757 crore while the Core retail credit has grown YoY by 13.54% to ₹130,421 crore.
Punjab National Bank’s provisions and contingencies were computed at ₹4,713 crore in December quarter as compared to ₹3,353 crore in corresponding quarter of the previous fiscal.
The asset quality has enhanced as gross non-performing assets were registered at 9.80% in the current quarter from 12.88 per cent in the previous year period. It has improved by 312 bps on year basis and 72 bps on quarter basis.
Net NPA have improved by 160 bps to 3.30 per cent from 4.90 per cent on a year-on-year basis.
PNB stock price had a stagnation phase after the crash of 2020 and the price has seen some minor bullishness in the past months. The price is trying hard to make it to the 23.6% retracement level. The stock price seems to manipulated under Rs 50 by the operators. The monthly MFI is at 78 points in spite of the price being below Rs 100 and under the 100-day exponential moving average for a period over 5 years. Investors should be cautions and avoid this stock.
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