About the Company:
India’s first Swadeshi Bank having a vision of ‘Most Preferred Bank’ for customers, a ‘Benchmark of Excellence’ for industry and ‘Best Place to Work in’ for employees, Punjab National Bank has reported its quarterly results of December.
QoQ & YoY Performance:
India’s leading public sector bank has declared the results for the third quarter of fiscal year ending March, 19.
- Net Interest Income: NII (difference between interest earned and interest expended) that serve as a major factor for future prospects landed to 436,772 lakhs surged by 3.02% QoQ while on YoY basis; there is an uptick of 7.91%.
- Net Profits: On QoQ basis, the bank has posted loss of 58.34% in net profits that are landed to 43,004 lakhs after tax while on YoY basis, there is a sharp plunge of 109.4%.
- Provisions and Contingencies: Bank's provisions and contingencies are increased by 49.08% QoQ while 68.50% fall is witnessed in YoY.
- NPA (Gross): Gross NPA% is increased by 1.64% QoQ while 2.33% plunge is witnessed in YoY.
- NPA (Net): Net NPA ratios are increased by 6.69% QoQ and plunged by 14.04% YoY.
As per Lokesh Sethia, SEBI Registered Research Analyst, the bank has witnessed a 50% surge in provisions and contingencies that signifies for worsen asset quality. Net Interest Income of the bank is increased by 7.91% while the Non-Interest Income of the company shoot up by 35.20% lower than the expectations of the street. Non Performing Assets will continue to remain a concern for the investors. We recommend to 'Avoid' this stock at current levels.