Punjab National Bank (PNB) Earnings Soar in 2Q, Surpassing Estimates with Net Income of 17.6 Billion Rupees

Punjab National Bank on Smartkarma

Analysts on Smartkarma, an independent investment research network, have recently released reports on Punjab National Bank. According to Daniel Tabbush, the bank is seeing rising operating costs and a languishing net interest margin, in addition to stagnant loan-to-deposit ratios. Its high government loans could be a major burden on returns. Despite this, Tabbush noted that the bank’s recoveries from high non-performing loans were soaring, pushing profits up 5.4x year-over-year. He also noted that its market capitalization compared to assets still lagged its peers.

In a separate report, Tabbush noted that costs at Punjab National Bank are high and rising, a major drag on its return on assets and return on risk-weighted assets, which largely offsets better credit metrics. He concluded that while there are positives in India banks, relative to all large peers, Punjab National Bank has the lowest return on risk-weighted assets and there is no loan-to-deposit ratio expansion.

A look at Punjab National Bank Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Punjab National Bank has a strong long-term outlook, as evidenced by its Smartkarma Smart Scores. The bank scored a 5 for Value, Growth, Resilience, and Momentum, and a 4 for Dividend, indicating that it is well-positioned for the future. Punjab National Bank provides financial services such as corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. The company services domestic conglomerates, medium and small industrial units, exporters, non-resident Indians and multinational companies. With a strong outlook and a wide range of services, Punjab National Bank is well-positioned to continue providing quality services to its customers.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

💡 Before it’s here, it’s on Smartkarma