PNB, 4th February, 2013

7/29/2019 PNB, 4th February, 2013

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Please refer to important disclosures at the end of this report 1

Pre-prov. profit 2,682 2,533 5.9 2,676 0.2

Source: Company, Angel Research

During 3QFY2013, PNB registered a better-than-expected performance on the asset

quality front, as higher recoveries/upgrades compensated for elevated slippages. On

the operating front, the pre-provisioning profits remained almost flat on a yoy basis

(due to cautious advance growth and interest reversal on slippages). Aided by 15.3%

yoy decline in the provisioning expense (on lower investment-related provisioning), the

bank posted an earnings growth of 13.5%.

During 3QFY2013, the

banks advances grew at a moderate pace of 13.2% yoy, aided by healthy traction in

services, retail and SME lending. Growth in CASA deposits came in at 13.1% yoy,

much higher than 8.2% yoy growth in overall deposits. Reported CASA ratio improved

by 144bp sequentially to 38.4%. During the quarter, the bank shed around

`24,000cr of differential rate deposits (including CDs), thereby leading to

substantial reduction in share of differential rate deposits (including CDs) from

20.8% in 2QFY2013 to 15.3%. NIM remained largely stable sequentially at 3.5%.

Despite higher recoveries, non-interest income (excl. treasury) de-grew by 1.4% yoy,

due to flat performance on the fee income front. The bank reported better-than-

expected asset quality performance, largely on back of strong performance on the

recoveries/upgrades front, even as slippages remained elevated. Recoveries and

upgrades during the quarter came in at `2,955cr, much higher than `2,564cr in

entire 1HFY2013. During the quarter, the annualized slippage ratio for the bank,

though came off from the high of 7.1% registered in 2QFY2013, still remained

elevated at 4.0%. On an absolute basis, while gross NPAs remained flat

sequentially, net NPA levels came off by 3.8% sequentially. Going ahead, the

Management expects slippages to continue in-line with the slowing economy.

Additionally, the bank restructured advances worth ~`3,700cr during the quarter,

(including advance to Suzlon), thereby taking its outstanding restructured book, to

`30,329cr. The PCR for the bank improved by 166bp qoq to 56%.

The banks valuations are currently at a low of 0.9x FY2014

ABV compared to its eight year range of 1.01.6x and median of 1.4x. due to theasset quality concerns facing the sector. The bank structurally has lower cost of

deposits than peers and has cyclically already experienced relatively higher asset

quality pain than peers. Valuation-wise, the stock is trading below the lower end of

its historical range.

% chg 39.3 13.6 12.0 18.0

% chg 13.5 10.2 1.9 14.4

NIM (%) 3.6 3.3 3.2 3.4

P/E (x) 6.4 6.2 6.1 5.4

P/ABV (x) 1.4 1.2 1.1 0.9

RoA (%) 1.3 1.2 1.0 1.0

RoE (%) 24.4 21.1 17.6 17.5


CMP `899

Target Price `1,053

Investment Period 12 Months

Stock Info

Sector Banking

Market Cap (` cr) 30,506

Beta 1.0

52 Week High / Low 1091/659

Avg. Daily Volume 101,510

Face Value (`) 10

BSE Sensex 19,781

Nifty 5,999

Reuters Code PNBK.BO

Bloomberg Code PNB@IN

Shareholding Pattern (%)

Promoters 56.1

MF / Banks / Indian Fls 20.6

FII / NRIs / OCBs 17.4

Indian Public / Others 5.9

Abs. (%) 3m 1yr 3yr

Sensex 6.6 14.3 20.9

PNB 19.6 (5.9) 1.4

022 3935 7800 Ext: 6808

[email protected]

022 3935 7800 Ext: 6872

[email protected]

Performance Highlights

3QFY2013 Result Update | Banking

February 1, 2013

7/29/2019 PNB, 4th February, 2013

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Punjab National Bank | 3QFY2013 Result Update

February 1, 2013 2

Exhibit 1:3QFY2013 performance

- on Advances / Bills 7,891 7,987 (1.2) 7,331 7.6 24,075 20,952 14.9- on investments 2,518 2,311 8.9 2,027 24.2 7,112 5,565 27.8

- on balance with RBI & others 113 55 105.0 81 39.9 223 163 36.7

- on others 27 68 (60.2) 42 (35.5) 106 68 55.0

3,042 2,927

Other income excl. treasury 848 765 10.7 859 (1.3) 2,643 2,553 3.5

- Fee Income 509 475 7.2 510 (0.2) 1,650 1,585 4.1

- Treasury Income incl. MF Div. 123 140 (12.1) 95 29.5 399 374 6.7

- Recov. from written off a/cs 145 60 141.7 92 57.6 292 269 8.6

- Others 194 230 (16.0) 257 (24.7) 701 699 0.3

- Employee expenses 1,407 1,426 (1.3) 1,264 11.4 4,253 3,717 14.4

- Other Opex 614 596 3.2 551 11.6 1,811 1,636 10.7

- Provisions for NPAs 466 1,140 (59.1) 579 (19.5) 2,506 1,464 71.2

- Other Provisions 336 (66) - 367 (8.6) 489 538 (9.1)

Provision for Tax 575 393 46.1 580 (1.0) 1,531 1,668 (8.2)

Effective Tax Rate (%) 30.6 27.0 360bp 33.5 (297)bp 29.7 32.5 (279)bp


Exhibit 2:3QFY2013 Actual vs Angel estimatesNet interest income 3,733 3,820 (2.3)

Other income 971 1,068 (9.2)

Operating expenses 2,022 2,051 (1.4)

Provisions & cont. 802 1,201 (33.3)

PBT 1,880 1,636 14.9

Prov. for taxes 575 491 17.1


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February 1, 2013 3

Exhibit 3:3QFY2013 performance analysisAdvances (`cr) 297,313 294,787 0.9 262,605 13.2

Deposits (`cr) 385,785 400,747 (3.7) 356,517 8.2Credit-to-Deposit Ratio (%) 77.1 73.6 351bp 73.7 341bp

Current deposits (`cr) 25,345 28,040 (9.6) 23,260 9.0

Saving deposits (`cr) 117,097 115,389 1.5 102,705 14.0

CASA deposits (` cr) 142,442 143,429 (0.7) 125,965 13.1

Reported CASA ratio (%) 38.4 37.0 144bp 36.2 224bp

CAR (%) 11.7 11.7 (7)bp 11.5 18bp

Tier 1 CAR (%) 8.6 8.7 (10)bp 7.9 77bp

Cost of deposits 6.8 6.9 (16)bp 6.7 1bp

Yield on advances 10.9 11.1 (19)bp 12.0 (107)bp

Yield on investments 7.9 7.9 0bp 7.9 0bp

Yield on funds 8.8 8.9 (6)bp 9.2 (37)bp

Cost of funds 5.7 5.8 (9)bp 5.8 (8)bp

Reported NIM 3.5 3.5 (3)bp 3.9 (41)bp

Cost-to-income ratio 43.0 44.4 (141)bp 40.4 258bp

Gross NPAs (` cr) 13,998 14,024 (0.2) 6,442 117.3

Gross NPAs (%) 4.6 4.7 (5)bp 2.4 219bp

Net NPAs (`cr) 7,586 7,883 (3.8) 2,901 161.5

Net NPAs (%) 2.6 2.7 (13)bp 1.1 145bp

Provision Coverage Ratio (%) 56.0 54.3 166bp 70.0 (1404)bp

Slippage ratio (%) 4.0 7.0 (297)bp 2.8 126bp

Credit cost (%) 0.4 1.0 (58)bp 0.6 (17)bp


Moderate business growth

During 3QFY2013, the bank witnessed moderate growth in its business, with

advances and deposits registering a growth of 13.2% and 8.2% yoy, respectively.

Growth in advances was primarily on the back of increased lending to the services

sector (growth of 19.0% yoy). Retail and SME loan book also increased at a

healthy pace of around 16% yoy each. Overseas advances registered a growth of

52.2% yoy (partly on account of INR depreciation). As of 3QFY2013, these

constitute around 10% of the banks total loan book.

On the liabilities front, current deposits witnessed moderate growth of 9% yoy

(lower sequentially by 9.6%), while growth in saving deposits was relatively higher

at 14% yoy (1.5% qoq). Hence, overall CASA deposits grew by 13.1% yoy, much

higher than the growth of 8.2% yoy registered in overall deposits. Consequently,

the reported CASA ratio improved by 224bp yoy (144bp sequentially) to 38.4%.

During 3QFY2013, the bank shed around `24,000cr of differential rate deposits

(including CDs). Consequentially, the banks share of differential rate deposits(including CDs) has reduced substantially from 20.8% as of 2QFY2013 to 15.3%

as of 3QFY2013.

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February 1, 2013 4

Exhibit 4:Higher Services/Retail/MSME lending aids moderate loan book Gr.Agri 41,750 40,291 3.6 38,306 9.0

Retail 30,295 29,745 1.8 26,009 16.5MSME 31,186 30,701 1.6 26,843 16.2

Medium & Large Corporates 94,217 93,487 0.8 88,412 6.6

Comm. Real Estate 9,140 9,473 (3.5) 10,382 (12.0)

Services & Others 60,380 64,681 (6.6) 50,729 19.0

Food credit 6,691 5,723 16.9 5,424 23.4

Overseas advances 30,100 26,772 12.4 19,778 52.2


Exhibit 5:Business growth moderates


Exhibit 6:CASA ratio improved sequentially


NIMs largely stable at 3.5%

The banks yield on advances declined by 19bp qoq (of which 9bp was on account

of interest reversals). Yield on investments for the bank remained stable

sequentially at 7.9%. Overall, yield on funds declined by 6bp qoq to 8.8%. The

banks cost of deposits came off by 16bp qoq to 6.8%. Consequently, the reported

NIM of the bank remained largely stable at 3.5%. The bank has recently

announced a 25bp base rate cut, which is expected to put pressure on margins.

However the Management has exuded confidence in maintaining margins at

~3.5% even in 4QFY2013, as they anticipate improvement in CD ratio (current

SLR holding is at ~29.8%).

18.7

21.3

21.2

18.4

13.2

23.4

21.3

18.9

17.3

8.2

73.7

77.4

76.4

73.6

77.1

70.0

72.0

74.0

76.0

78.0

-

5.0

10.0

15.0

20.0

25.0

3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)

35.3

35.3

34.6

35.8

36.9

11.7 11.59.8

15.6

13.1

-

10.0

20.0

20.0

23.0

26.0

29.0

32.0

35.0

38.0


Calculated CASA ratio (%) CASA yoy growth (%, RHS)

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February 1, 2013 5

Exhibit 7:Yield on funds lower by 6bp sequentially


Exhibit 8:NIM stable sequentially at 3.5%


Subdued performance on the non-interest income (excludingtreasury) front

During 3QFY2013, the non-interest income (excluding treasury) de-grew by 1.4%

yoy, due to flat performance on the fee income front. Commission, exchange and

brokerage (CEB) income for the bank remained flat on a yoy basis, as 39.6% yoy

decline in the processing fees income stream, more than negated the 7.3% yoy

growth in the LC/LG (letter of credit/ letter of guarantee) income and doubling of

incidental charges, on a yoy basis. Recoveries from written-off accounts grew

substantially by 57.6% yoy to `145cr, while income from forex transactions

declined by 26.0% yoy to `114cr. Treasury income (including dividend from MFs)

came in at `123cr compared to `95cr in 3QFY2012 and `140cr in 2QFY2013.Overall, the non-interest income came in `970cr, registering a marginal growth of

1.7% yoy.

Exhibit 9:Non-interest inc. remains flat yoy, despite higher recoveriesCEB 509 475 7.2 510 (0.2)

Treasury incl. MF Dividend 123 140 (12.1) 95 29.5

Forex 114 127 (10.2) 154 (26.0)

Recoveries 145 60 141.7 92 57.6

Others 79 103 (23.3) 103 (23.3)

Other income excl. treasury 847 765 10.7 859 (1.4)


Higher recoveries/upgrades more than compensate for elevated

slippages, leading to stable Asset quality performance

During 3QFY2013, the bank reported a better-than-expected asset quality

performance, largely on back of strong performance on the recoveries/upgrades

front, even as slippages remained elevated. Recoveries and upgrades during the

quarter came in at`

2,955cr, much higher than`

2,564cr in entire 1HFY2013.Annualized slippage ratio for the bank during the quarter, though came off from

the high of 7.1% registered in 2QFY2013, still remained elevated at 4.0%. On an

absolute basis, while gross NPAs remained flat sequentially, net NPAs improved by

9.18

8.67

9.13

8.87 8.81

7.00

7.50

8.00

8.50

9.00

9.50


(%)

3.88

3.503.60

3.50 3.47

2.60

2.80

3.00

3.20

3.40

3.603.80

4.00


(%)

7/29/2019 PNB, 4th February, 2013

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February 1, 2013 6

3.8% sequentially. Gross and net NPA ratios, for the bank came off sequentially by

5bp and 13bp, to 4.6% and 2.6%, respectively. Going ahead, the Management

expects slippages to continue in-line with the slowing economy.

Additionally, the bank restructured advances worth ~`3,700cr during the quarter,(including advance to Suzlon) compared to `2,770cr restructured in 2QFY2013.

As of 3QFY2013, its outstanding restructured book, which is stated borrower-wise,

stood at `30,329cr (~10% of its advances). Out of the outstanding restructured

book, ~25% is power (majorly discoms). The provisioning coverage ratio for the

bank has improved by 166bp qoq to 56%.

Exhibit 10:Though slippages remain elevated, still...


Exhibit 11:... NPA ratios lower on higher recoveries/upgrades

Source: Company, Angel Research;

Exhibit 12:Recoveries/Upgrades nearly tripled on sequential basisOpening 14,024 9,988 40.4 5,150 172.3 4,379

Additions 2,968 5,150 (42.4) 1,683 76.4 6,672

Deductions 2,995 1,115 168.6 391 666.4 2,331

- Write offs 40 17 137.3 31 28.2 126

- Recoveries 1,154 558 107.0 334 245.4 1,675

- Upgrades 1,801 541 233.1 26 6,907.8 530

Closing 13,998 14,024 (0.2) 6,442 117.3 8,720


Cost-to-income ratio up by 258bp yoy to 43%

Operating expenses for the bank were higher by 11.4% on a yoy basis, on the

back of 11.4% yoy increase in employee expenses and 11.6% yoy increase in other

operating expenses. However, growth in operating income was modest at 4.7%

yoy, which led the cost-to-income ratio to increase by 258bp yoy to 43%.

2.8

4.7

3.8

7.0

4.0

0.6

0.90.8

1.0

0.4

-

0.2

0.4

0.6

0.8

1.0

1.2

-

1.0

2.0

3.0

4.0

5.0

6.07.0

8.0


Slippages (%) Credit cost (%, RHS)

2.4

2.9

3.3

4.7

4.6

1.1

1.5

1.7

2.7

2.6

70.0

62.7 62.854.3 56.0

-

10.0

20.0

30.0

40.0

50.0

60.070.0

80.0

-

1.0

2.0

3.0

4.0

5.0


Gross NPAs (%) Net NPAs (%) PCR (%, RHS)

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February 1, 2013 7

Exhibit 13:Steady branch expansion continues


Exhibit 14:Cost-to-income ratio improves sequentially


Investment arguments

Strong CASA legacy, but losing market share

PNB has a structural advantage of having relatively better CASA ratio of 38.4% (as

of 3QFY2013), which is driven by strong rural and semi-urban presence,

especially in North India (total of 5,788 branches and 6,050+ ATMs). Although

the high CASA ratio is expected to sustain the higher NIMs, the bank has been

losing its market share like most other public sector banks on account of slow

branch expansion and competition from private banks. PNBs savings market

share declined by 53bp to 7.4% during FY200812.

Investment concerns

Asset quality to remain under watch

PNB was one of the highest risk-taking banks immediately post the Lehman crisis

and initially, started delivering very high yield on assets and RoEs of as much as

26%. For the last couple of years, we had been concerned that the inevitable

seasoning of that book would lead to asset quality issues for the bank and that is

what is getting increasingly reflected in the numbers.

During FY2012, slippage ratio for the bank was the highest in the last four years at

2.7% and in 1HFY2013, it had spiked up sharply to 5.8%. In 3QFY2013, thoughannualized slippage ratio has come off from those highs, however it still remains

elevated at 4.0%. During 3QFY2013, the bank has registered an inspired

performance on the recoveries/upgrades front, which has lend stability to its NPA

levels. Going ahead, we remain cautious on the incremental asset quality

pressures for the bank in the near term, as we take into account the banks

relatively higher exposure to risky sectors and the overall weak macro-economic

environment.

Outlook and valuation

The banks valuations are currently at a low of 0.9x FY2014 ABV compared to itseight year range of 1.01.6x and median of 1.4x. due to the asset quality concerns

facing the sector. The bank structurally has lower cost of deposits than peers and

has cyclically already experienced relatively higher asset quality pain than peers.

5,

393

5,

658

5,

697

5,

748

5,

788

5,793

6,009

6,059

6,005

6,058

5,600

5,700

5,800

5,900

6,000

6,100

5,100

5,200

5,300

5,400

5,500

5,600

5,700

5,800

5,900


Branches ATMs (RHS)

40.4

36.0

41.6

44.4

43.0

1.8

1.5

1.81.7 1.7

1.3

1.4

1.5

1.6

1.7

1.8

-

10.0

20.0

30.0

40.0

50.0


Cost-to-income ratio (%) Opex to average assets (%, RHS)

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February 1, 2013 8

Valuation-wise, the stock is trading below the lower end of its historical range.

Exhibit 15:Key assumptions

Credit growth 12.0 15.0 11.0 15.0

Deposit growth 13.0 16.0 11.0 15.0

CASA ratio 35.2 34.6 36.0 35.7

NIMs 3.2 3.3 3.2 3.4

Other income growth 5.9 2.4 (0.6) 3.3

Growth in staff expenses 20.5 12.0 20.0 12.0

Growth in other expenses 8.0 10.0 8.0 10.0

Slippages 4.3 3.2 4.8 2.9

Coverage 59.0 64.0 60.0 65.0

Source: Angel Research

Exhibit 16:Change in estimates

NII 15,236 15,023 (1.4) 17,939 17,723 (1.2)

Non-interest income 4,452 4,178 (6.1) 4,559 4,317 (5.3)

Operating expenses 8,153 8,130 (0.3) 9,083 9,056 (0.3)

Provisions & cont. 4,806 3,704 (22.9) 5,153 4,556 (11.6)

PBT 6,729 7,368 9.5 8,261 8,428 2.0

Prov. for taxes 2,019 2,391 18.4 2,680 2,734 2.0

Source: Angel Research

Exhibit 17:P/ABV band


0

400

800

1,200

1,600

2,000

2,400

Apr-04

Sep-0

4

Feb-0

5

Jul-05

Dec-0

5

May-0

6

Oct-06

Mar-07

Aug-0

7

Jan-0

8

Jun-0

8

Nov-0

8

Apr-09

Sep-0

9

Feb-1

0

Jul-10

Dec-1

0

May-1

1

Oct-11

Mar-12

Aug-1

2

Jan-1

3

Price (`) 0.5x 0.9x 1.3x 1.7x 2.1x

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February 1, 2013 9

Exhibit 18:Recommendation summary

AxisBk Buy 1,508 1,753 16.2 2.0 2.4 10.8 16.4 1.6 20.1

FedBk Accumulate 511 557 8.9 1.2 1.4 9.9 6.4 1.2 13.1

HDFCBk Neutral 640 - - 3.6 - 17.7 28.1 1.8 22.1

ICICIBk* Buy 1,171 1,404 19.9 1.9 2.2 13.8 22.8 1.5 15.9

SIB Buy 28 34 21.9 1.1 1.4 6.8 6.9 1.0 17.7

YesBk Accumulate 532 576 8.4 2.7 2.9 12.5 24.1 1.5 23.6

AllBk Buy 160 188 18.0 0.7 0.8 4.8 (5.2) 0.8 14.7

AndhBk Neutral 111 - - 0.8 - 5.1 (4.6) 0.8 13.8

BOB Neutral 867 - - 1.0 - 6.3 6.5 1.0 17.1

BOI Accumulate 354 380 7.4 0.9 1.0 5.4 18.2 0.8 16.0

BOM Neutral 59 - - 0.7 - 4.5 44.3 0.6 16.9

CanBk Accumulate 472 516 9.2 0.9 1.0 5.9 4.1 0.8 14.7CentBk Neutral 83 - - 0.7 - 4.1 95.5 0.5 14.3

CorpBk Buy 428 517 20.7 0.7 0.8 4.3 (3.1) 0.8 14.8

DenaBk Buy 108 132 22.6 0.7 0.8 4.4 3.5 0.8 15.9

IDBI# Buy 106 122 15.1 0.7 0.8 4.7 18.4 0.9 14.1

IndBk Buy 203 245 20.9 0.7 0.9 4.7 4.4 1.1 16.8

IOB Accumulate 80 88 10.2 0.5 0.6 4.0 23.9 0.6 13.4

J&KBk Neutral 1,377 - - 1.2 - 7.0 9.2 1.4 18.0

OBC Neutral 322 - - 0.7 - 5.4 23.2 0.8 13.5

SBI* Accumulate 2,410 2,600 7.9 1.6 1.7 9.4 21.5 1.0 17.7

SynBk Buy 133 157 17.5 0.7 0.9 4.8 12.4 0.7 16.4

UcoBk Neutral 75 - - 0.8 - 5.0 2.6 0.5 13.5

UnionBk Accumulate 249 286 14.9 0.8 1.0 5.3 20.7 0.8 16.6

UtdBk Buy 74 87 17.5 0.5 0.6 3.4 19.6 0.7 16.1

VijBk Accumulate 58 62 6.8 0.7 0.7 5.3 9.7 0.5 12.6

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF

Company Background

Punjab National Bank is the country's second-largest bank, with a balance sheet

size of over `4.7lakh cr and a pan-India network of 5,750+ branches. The bank'snetwork is primarily spread over northern India, ie in Punjab, Haryana and Uttar

Pradesh. Almost 62% of its branches are based in rural and semi-urban

hinterland, which results in a large legacy of low-cost CASA deposits (at 38.4% of

deposits; amongst the highest in the sector).

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February 1, 2013 10

Income statement

- YoY Growth (%) 27.0 20.6 39.3 13.6 12.0 18.0

- YoY Growth (%) 46.2 23.6 0.1 16.3 (0.6) 3.3

- YoY Growth (%) 32.1 21.5 27.6 14.2 9.0 14.8

- YoY Growth (%) 19.3 13.2 33.6 10.0 16.1 11.4

- YoY Growth (%) 43.4 27.5 23.6 17.2 4.3 17.3

- YoY Growth (%) 38.1 44.9 75.3 43.6 3.5 23.0

- YoY Growth (%) 44.5 24.0 11.2 7.2 4.7 14.4

- as a % of PBT 35.1 33.9 32.5 30.6 32.4 32.4

- YoY Growth (%) 50.9 26.4 13.5 10.2 1.9 14.4

Share Capital 315 315 317 339 339 339Reserve & Surplus 14,338 17,408 21,192 27,478 31,391 35,843

Deposits 209,761 249,330 312,899 379,588 421,343 484,545

- Growth (%) 26.0 18.9 25.5 21.3 11.0 15.0

Borrowings 4,374 8,572 20,399 26,074 27,887 31,935

Tier 2 Capital 8,085 10,690 11,190 11,190 10,911 10,638

Other Liab. & Prov. 10,045 10,318 12,328 13,524 15,161 17,341

Cash Balances 17,058 18,328 23,777 18,493 18,960 19,382

Bank Balances 4,355 5,146 5,914 10,335 8,873 10,161

Investments 63,385 77,724 95,162 122,629 138,870 159,906

Advances 154,703 186,601 242,107 293,775 326,090 375,003

- Growth (%) 29.5 20.6 29.7 21.3 11.0 15.0

Fixed Assets 2,397 2,513 3,106 3,169 3,401 3,778

Other Assets 5,020 6,320 8,259 9,793 10,837 12,410

- Growth (%) 24.1 20.1 27.5 21.1 10.7 14.5

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February 1, 2013 11

Ratio analysis

NIMs 3.3 3.2 3.6 3.3 3.2 3.4Cost to Income Ratio 42.3 39.4 41.3 39.7 42.3 41.1

RoA 1.4 1.4 1.3 1.2 1.0 1.0

RoE 25.8 26.6 24.4 21.1 17.6 17.5

CASA Ratio 38.8 40.8 38.5 35.3 36.0 35.7

Credit/Deposit Ratio 73.8 74.8 77.4 77.4 77.4 77.4

CAR 12.6 14.2 12.4 12.6 12.6 12.2

- Tier I 8.1 9.1 8.4 9.3 9.6 9.6

Gross NPAs 1.6 1.7 1.8 2.9 4.4 5.1

Net NPAs 0.2 0.5 0.8 1.5 2.2 2.1

Slippages 1.4 1.8 2.3 2.7 4.8 2.9

Loan Loss Prov. /Avg. Assets 0.4 0.4 0.6 0.6 0.7 0.7

Provision Coverage 89.5 81.2 73.2 62.7 60.0 65.0

EPS 98.0 123.9 139.9 144.0 146.7 167.9

ABVPS (75% cover.) 416.7 514.8 628.2 734.2 814.1 957.4

DPS 20.0 22.0 22.0 21.8 27.0 31.5

PER (x) 9.2 7.3 6.4 6.2 6.1 5.4

P/ABVPS (x) 2.2 1.7 1.4 1.2 1.1 0.9

Dividend Yield 2.2 2.4 2.4 2.4 3.0 3.5

NII 3.2 3.1 3.5 3.2 3.1 3.3

(-) Prov. Exp. 0.4 0.5 0.7 0.9 0.8 0.8

Adj. NII 2.7 2.6 2.8 2.4 2.3 2.4

Treasury 0.3 0.3 0.1 0.1 0.1 0.0

Int. Sens. Inc. 3.0 2.9 2.8 2.4 2.4 2.5

Other Inc. 1.0 1.0 1.0 0.9 0.8 0.7

Op. Inc. 4.0 3.9 3.8 3.4 3.2 3.2

Opex 1.9 1.8 1.9 1.7 1.7 1.7PBT 2.1 2.2 1.9 1.7 1.5 1.5

Taxes 0.8 0.7 0.6 0.5 0.5 0.5

Leverage 18.6 18.5 18.6 18.0 17.0 16.7

7/29/2019 PNB, 4th February, 2013

12/12


February 1 2013 12

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PNB, 4th February, 2013