PNB Q4 results preview: PSU bank's profit likely to soar 9x on double-digit loan growth

Punjab National Bank (PNB) Q4 results preview: Zee Business research expects the state-run bank to post a robust performance in the last three months of the fiscal year gone by, driven by double-digit loan growth and stable asset quality.

Zee Business research analysts also believe the net interest margin of PNB may remain stable YoY basis - Image Source: PTI

Punjab National Bank (PNB) Q4 results preview: Punjab National Bank (PNB) – India’s fourth largest public sector lender in terms of market value – is all set to report its financial results for the quarter that ended March 2023 on Friday, May 18. Analysts expect the PSU bank to clock a robust performance driven by double-digit loan growth and stable asset quality.

According to Zee Business research, PNB is likely to report a standalone net profit of Rs 1,800 crore for the three-month period, as against its net profit of Rs 201 crore for the corresponding quarter a year ago. The analysts estimate its net interest income (NII) — or the difference between interest earned and interest paid — at Rs 9,400 crore, which translates to growth of 28.7 per cent on a year-on-year basis.

The analysts expect a 13 per cent growth in loans and an 8-10 per cent expansion in deposits on a year-on-year basis.

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The bank's net interest margin – a key measure of profitability for financial institutions — is expected to remain stable on a sequential basis with a reduction in slippages and provisions.

PNB Q4 results: What else to expect

“The asset quality trend of PNB may be better off with curtailed slippages and higher recovery pushing down gross non-performing loan,” said Elara Capital.

Given a low base, the bank may have to consistently deliver to match the sector average, according to the brokerage.

Elara Capital has a ‘sell’ call on PNB shares with a target price of Rs 45 per share.

Sharekhan has a ‘buy’ rating on PNB with a target of Rs 64 per share, which implies an upside potential of almost 40 per cent.

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