Punjab National Bank posts standalone net loss at Rs940.01cr in Q1FY19, vs. net profit of Rs343.40cr yoy : Beats Estimates

The bank’s standalone NII stood at Rs4,692cr, up 21.7% yoy and 53.16% qoq.

Aug 09, 2018 03:08 IST India Infoline Research Team

Punjab National Bank Q1FY19

Standalone Results Q1FY19: ( cr)

Q1FY19 YoY (%)
NII 4,692 21.7
GNPA (%) 18.3 -12
Provisions 5,758.16 120.7
Net Loss (adjusted) 940.01 -
***GNPA change in bps is on qoq basis
Punjab National Bank’s Q1FY19 revenue has improved by 4.2% yoy to Rs15,072.4cr as against Rs14,468.1cr. NII for the quarter has improved by 21.7% yoy to Rs4,692cr as against Rs3,855cr yoy. The bank has reported net loss of Rs940cr, which was lower than consensus estimates (net loss of ~Rs1,600cr) and against Rs343cr of net profit yoy. The lower net loss was mainly attributed to decline in provisions. Its GNPA for Q1FY19 stood at 18.26% against 18.38% qoq, which has declined by 12bps. NNPA for the quarter came at 10.58% against 11.24% qoq, which has declined by 66bps.
  • Operating profit of Rs4,190cr (+30% yoy) was largely driven by ~22% yoy growth in NII. The provisions for the quarter came at Rs5,758.1cr as against Rs2,608.7cr yoy, which has improved by 120.7% yoy.
  • Fresh slippages came in at Rs5,250cr (5.3% annualized, Rs7360cr including debits in existing accounts), while recoveries and upgrades increased sharply to Rs8,440cr.
  • Its total stressed assets stood at Rs86,900cr as against Rs91,8500cr in 4QFY18.
  • The management stated that the bank will try to recover Rs20,000cr in H1FY19.
  • CAR ratio improved to 9.62% (+42bps qoq). Its CAR will further improve to 10.3% after considering the recent capital infusion of Rs2,816cr from the government.

Technical View:

Punjab National Bank is currently trading at Rs. 87.95, down by 2.2 points or 2.44% from its previous closing of Rs. 90.15 on the BSE.
The scrip opened at Rs. 90.95 and has touched a high and low of Rs. 91.60 and Rs. 86.65 respectively. So far 7,90,76,769 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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