PNB stock up 6% post Q2 results, strong listing by subsidiary

Shares of Punjab National Bank on Monday surged over 6% following the company's housing finance arm making a strong debut at the bourses coupled with a marginal stability in NPA numbers during the second quarter.

The stock jumped 5.7% to Rs 139.20 on BSE.

On NSE, shares of the company rose by 6.19% to Rs 139.80.

"After witnessing sharp deterioration in asset quality in the last few quarters, PNB has reported some stability in NPA numbers during Q2 FY17," said Siddharth Purohit, Senior Equity Research Analyst - Banking, Angel Broking.

State-owned Punjab National Bank's net profit fell by 11.5% to Rs 549.36 crore for second quarter as the provision for bad loans rose, even as "green shoots" are visible on stressed assets front.

The bank had reported a net profit of Rs 621.03 crore during the July-September quarter last financial year.

"The green shoots are being seen as stressed assets ratio now reduced to 13%. From here onwards, we would like to see the reduction happening gradually. Many of the numbers, whether it is the income or cost of deposits, net interest margin, GNPA, NNPA all are moving in a positive trajectory," Usha Ananthasubramanian, MD and CEO, Punjab National Bank had said.

Total earnings of the bank during July-September quarter of current fiscal rose by a marginal 3.8% to Rs 14,218.27 crore as against Rs 13,701.93 crore a year earlier.

Gross non-performing assets (GNPAs) moved up to 13.63% of the gross advances during the quarter as against 6.36% a year ago, while net NPAs rose to 9.10% as compared to 3.99% in the year-ago period.

The GNPAs showed slight improvement at 13.63% q-o-q) from 13.75% at the quarter ended June.