How much Punjab National bank(PNB) Share Price will fall? Sell/Hold/buy? Prabhudas Lilladher
How Much Punjab National Bank Share Will Fall?
PNB profit were higher than gauges at Rs6.2bn with just driver being a particularly solid NII (24% QoQ development), in any case charges were frail, while other pay fell off on lower pay.
Bank kept on causing higher arrangements to cover generally the heritage as slippages to have stayed high just as benefits, regardless has helped resource quality.
Heritage resources are not covered with 68% PCR, however kept on building high provisioning of 300bps in FY21 and 250bps in FY22 as slippages will stay high, Management expects rebuilding result to be lower at 3% of advances v/s prior evaluation of 5-6% of credits which appears on lower side given morat book has stayed on high side at end Aug’20.
Punjab national bank Share Analysis
We increment credit cost and eliminate DTA sway from income and move to 35% expense rate. HOLD with TP of Rs30 (from Rs37) in light of 0.4x Sep ABV (moved from Mar-22). Punjab National bank share, Hold Call, with target Price of Rs. 30 from Prabhudas Lilladher.