Punjab National Bank Company analysis

Company Overview 

Started in 1895 Lahore, it is first Indian Bank solely started with Indian capital alive which is survived till date. Right now it is present across India with more than 3.5 cr customer. The bank also enjoys largest network in rural and semi urban branches. Out of total 4540 branches 2/3 branches are in Semi Urban and Rural areas.

Just like any other banks PNB is also giving wide variety of products and services from Retail and Wholesale banking. Personal Banking, Project Finance, Debit Cards and credit card. HOME LOAN,agriculture loans. The bank also holds 30% stake in PNB-Metlife and Also holds stake in UTI Mutual Fund. It is also setup SPV for home loan With Destimony Enterprise Private Limited. The bank is also maintaining High CASA among PSU banks which is one of the reasons for the success.

Share Holding Pattern

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Financials and Ratio

 2010-112011-122012-132013-142014-152015-16
Loan book 242106.67293774.76308725.21349269.13380534.40412325
ROE 22.1218.5215.199.698.120
ROA1.171.060.990.60.5(0.59)
EPS 140.6154.02139.5293.9116.91(20.82)
Book Value 632.40777.39884.03952.5203.24180.61
Efficiency 35.9031.3331.0636.3637.1348,18
Net NPA to Loan Book 122349
Tier 1 Capital 89109108
Dividend per Share 222227103.30
CASA 36.1640.8641.3140.5741.63

Future Prospects : Not so good capital adequacy for continuously increasing Net NPA but well maintained efficiency, Not so good ROA since last some years, decline in Dividend. In short even though it is very big bank but NPA is big issue. Though management is doing everything to collect but as the recession and some other issue are not permitted them. Stake sell will be good as The company holds stake in some good companies and RBI policies are helping them.

Looks like worst is behind them.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter