Analysis of Financial Track RecordData adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
|Net Profit/Total Funds (%)||1.25||1.15||1.07||0.99||1.15||1.37||1.4||1.31||1.16||1.02|
|Net NPA to Net Advances (%)||0.98||0.2||0.29||0.76||0.64||0.17||0.53||0.85||1.52||2.35|
|Capital Adequacy Ratio||-||-||-||-||-||-||-||-||-||12.72%|
CAGR Colour Code Guide
|9 yrs||5 yrs||3 yrs||1 yr|
|Net Interest Income||17%||21.8%||20.6%||11.5%|
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
Book Value per Share
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
|RATIOS \ YEARS||Mar'04||Mar'05||Mar'06||Mar'07||Mar'08||Mar'09||Mar'10||Mar'11||Mar'12||Mar'13|
|Interest Earned / Total Income||80.17||84.67||88.69||87.27||88.03||86.49||86.25||88.29||89.84||90.92|
|Return on Equity (%)||26.11||20.01||16.49||15.29||19.11||24.48||24.89||23.55||20.35||16.21|
on 5 important parameters. These parameters are colour coded as Green (Very Good),
Orange (Somewhat Good) and Red (Not Good)
Punjab National Bank, in the last 10 years, increased its net interest income by 14.89%, from Rs.3708 Cr. in FY04 to Rs.14857 Cr. in FY13. Its CASA, the source of low cost fund, was at the six-year-average level of 39.38%. The CASA percentage of the Bank has decreased from 46.12% in FY07 to 40.86% in FY13. The high interest income and the low cost because of high CASA helped the Bank maintain the average Net Interest Margin (NIM) at the level of 3.5%. The Bank has increase ... Read more
Punjab National Bank, in the last 10 years, increased its net interest income by 14.89%, from Rs.3708 Cr. in FY04 to Rs.14857 Cr. in FY13. Its CASA, the source of low cost fund, was at the six-year-average level of 39.38%. The CASA percentage of the Bank has decreased from 46.12% in FY07 to 40.86% in FY13. The high interest income and the low cost because of high CASA helped the Bank maintain the average Net Interest Margin (NIM) at the level of 3.5%. The Bank has increased its book value per share by 16.81% in the last 10 years, from Rs.193.6 in FY04 to Rs.915.5 in FY13.
PNB managed to maintaina six-year-average ROE (Return on Equity) in excess of 20%, with RoE as on Mar’13 standing at 20.35%. The non-performing assets to net advances ratio has increased from 0.17% to 2.35% in the last five years. This shows that the assets quality of the Bank has deteriorated. However this has been buffered by one of the best in the class NIM and a strong capital base -PNB has a capital adequacy ratio of 12.72% as on Mar’13.
In nut shell, we can say that the core operating performance of Punjab National Bank has been very good. On a cautionary note its CASA has decreased due to intensifying competition and assets quality have deteriorated over the last few years due to a downturn in the economic cycle. However the market share of PNB in both assets (loans) and liabilities (deposits) has increased. The bank had also seen a sharp increase in term deposits owing to high interest rate scenario but the bank has taken efforts to mitigate this and the results have been good. Hence, we conclude that the 10 YEAR X-RAY of the Punjab National Bank is Green (‘Very Good’).Show less