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Punjab National Bank Stock Analysis

Large Cap
Evaluated by 8567 users | BSE: 532461 | NSE: PNB |
Bank - Public

Punjab National Bank, India’s first Swadeshi Bank, commenced its operations on April 12, 1895 from Lahore. The Bank was established by the spirit of nationalism and was the first bank purely managed by Indians with Indian Capital. The financial year...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Punjab National Bank has not performed well majority of the past ten years indicating its past ten year financial track record is not good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Net Interest Income (Rs. Cr.)12,04513,70615,26816,73817,36716,47315,33615,19417,49117,921
Y-o-Y Gr. Rt.33-13.8%11.4%9.6%3.8%-5.1%-6.9%-0.9%15.1%2.5%
Total Income31,20741,73547,38049,66854,88456,90457,22657,60859,51564,306
Y-o-Y Gr. Rt.-33.7%13.5%4.8%10.5%3.7%0.6%0.7%3.3%8.1%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
28.8829.6328.0319.9818.33-18.795.58-43.88-20.790.65
Y-o-Y Gr. Rt.-2.6%-5.4%-28.7%-8.3%-202.5%NA-886.4%NANA
Book Value per Share (Rs.)
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
133.45163.62186.92202.61219.18198.41186.13137.0592.3187.74
Y-o-Y Gr. Rt.-22.6%14.2%8.4%8.2%-9.5%-6.2%-26.4%-32.7%-5%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1 : Not Good
Net Profit/Total Funds (%)1.311.161.020.660.55-0.540.12-1.67-1.280.04
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%): Colour Rating Guide
  • < 0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1: Not Good
Net NPA to Net Advances (%)0.851.522.352.854.068.617.8111.246.565.78
To view Capital Adequacy Ratio Colour Rating Guide click here
Capital Adequacy Ratio: Colour Rating Guide
  • > 12% : Very Good
  • 9%-12% : Somewhat Good
  • <9%: Not Good
Capital Adequacy Ratio - - - - - - - - - 0%
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Punjab National Bank should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Interest Income4.5%0.6%5.3%2.5%
Total Income8.4%3.2%4%8.1%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-34.4%-48.7%-51.2%NA
Book Value per Share
-4.6%-16.7%-22.2%-5%
Share Price -16.9% -25.4% -43.1% -49%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Interest Earned / Total Income88.2989.8490.990.5288.7589.2883.9884.5887.6285.4
Margins
To view Margins Colour Rating Guide click here
Margins: Colour Rating Guide
  • >2.75 : Very Good
  • 1.75-2.75 : Somewhat Good
  • <1.75 : Not Good
NIM (%)3.2133.162.982.82.392.172.052.332.22
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15% : Very Good
  • 12%-15% : Somewhat Good
  • <12% : Not Good
Return on Equity (%)23.5520.3516.2110.148.64-9.22.29-32.5-24.960.72
Liquidity Ratio
To view Liquidity Ratio Colour Rating Guide click here
Liquidity Ratio: Colour Rating Guide
  • >35 : Very Good
  • 25-35 : Somewhat Good
  • <25 : Not Good
CASA (%) 38.235.0538.6537.7836.0336.5841.6640.9742.1542.86
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 85.59%
Institutions 6.97%
Non-Institutions 7.45%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Punjab National Bank and arrived at the following conclusion:

Past 10 year's financial track record indicates that Punjab National Bank is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Punjab National Bank's performance infers:

Punjab National Bank earnings have declined by -48.7%, whereas share price has depreciated -25.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Punjab National Bank share prices over the last 10 years. Here is what we found out:

Punjab National Bank share price has depreciated -17.7% annually over the past ten years.

Punjab National Bank, India’s first Swadeshi Bank, commenced its operations on April 12, 1895 from Lahore. The Bank was established by the spirit of nationalism and was the first bank purely managed by Indians with Indian Capital. The financial year 2019- 20 was significant in view of the announcement of amalgamation of Public sector Banks wherein Oriental Bank of Commerce and United Bank of India amalgamated with Punjab National Bank with effect from

Punjab National Bank, India’s first Swadeshi Bank, commenced its operations on April 12, 1895 from Lahore. The Bank was established by the spirit of nationalism and was the first bank purely managed by Indians with Indian Capital. The financial year 2019- 20 was significant in view of the announcement of amalgamation of Public sector Banks wherein Oriental Bank of Commerce and United Bank of India amalgamated with Punjab National Bank with effect from April 1, 2020. The Bank’s brand image and trust reposed by its customers have been reflected in growing customer base and rising business graph of the Bank. Bank’s focus has been on qualitative business growth, recovery and arresting fresh slippages. The Bank’s journey towards digitalization continues through constant innovation and upgradation of its existing products and services. The Bank strives to provide hassle free and convenient banking services to several customers. The Bank believes in leveraging technology for delivering best customer experience.

Business area of the company

The bank is one of the premier banking institutions in the country with a long tradition of sound and prudent banking.

Products

Personal (Deposit, Loans, Apply For OTS in NPA Accounts, Insurance, Government Business, Agriculture Banking, Financial Inclusion, Priority Sector)
Corporate (Corporate Loans, EXIM finance, Cash Management Services, Gold Card Scheme for Exporters, Doorstep Banking Services)
International (Schemes / Products / Services, NRI Services, Help Desk For Forex Services, World Travel Card, Foreign Office Details)
Capital Services (Depository Services, Mutual Funds, Merchant Banking, ASBA)

E-services

  • PNB ONE
  • PNB PIHU
  • PNB VERIFY
  • OTP Based Aadhaar Seeding
  • Retail Internet Banking
  • Corporate Internet Banking
  • PNB Bharat BillPay
  • BHIM
  • BHIM PNB (UPI)
  • RTGS/NEFT/IMPS/ECS/NACH
  • Green PIN - Debit Card
  • Missed Call Services
  • E-Statement
  • SMS Banking

Subsidiaries of the company

Domestic

  • PNB Gilts Ltd. 
  • PNB Investment Services Ltd. 
  • PNB Insurance Broking Pvt. Ltd.

International

  • Punjab National Bank (International) Ltd.
  • Druk PNB Bank Ltd

Awards

  • FICCI Corporate Social Responsibility Award 2013-14
  • PNB Conferred With Appreciation Certificate
  • RBI Rajbhasha Award 2014-15
  • Assocham Social Banking Exellence Award 2015
  • Golden Peacock National Training Award 2016
  • Rajbhasha Kirti Award 2017-18
  • Aadhar Excellence Award
  • NSDL Star Performer Awards 2018
  • Best State Nodal Bank Award 2018-19
  • Digital Payments Award 2018-19
  • IBA Banking Technology Awards 2019
  • Top Rankers Excellence Award
  • EASE Reforms Excellency Award
  • PNB Wins Governance Now BFSI Awards 2019
  • BFSI Digital Innovation Awards 2019
  • Rajbhasha Kirti Award 2019
  • Bank Of The Year Award 2019
  • PNB Wins SCOPE CCE Award 2019
  • PNB Won IBA Banking Technology Awards 2020
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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