Friday, October 29, 2021

PNB Declines 10% After Interest Income Falls In Q2 | Stock Outlook


Punjab National Bank Declines 10% After Interest Income Falls In September Quarter

Shares of the country's second largest public sector lender - Punjab National Bank - declined as much as 10.4 per cent to hit an intraday low of ₹ 41.50 on the BSE a day after it reported September quarter earnings. The sharp decline in Delhi-based Punjab National Bank's share price came on the back of a fall in net interest income. Punjab National Bank's net interest income - the difference between interest earned and interest expended - fell 25 per cent to ₹ 6,353 crore in the September quarter from ₹ 8,455 crore in the year-ago period.

The bank's profit, however, jumped 78 per cent to ₹ 1,105 crore from ₹ 621 crore in the same quarter last year on the back of lower provisioning for bad loans, but the earnings were below estimates, analysts said.

PNB's provisioning for bad loans fell to ₹ 2,693 crore versus provisioning of ₹ 3,811 crore during the same period last year.

Stock Outlook

40- 38 is good support zone and can be used for fresh long position. Still long term satisfactory.

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