State-owned Punjab National Bank (PNB) will report its fourth-quarter earnings on Tuesday and analysts expect the lender will report a net loss of Rs 4 crore as compared to a profit of Rs 247 crore in Q3FY19.
- It may be a tepid quarter for PNB given the fact that analysts are working with elevated slippage around Rs 4,000-4,250 crore for this quarter. So the improvement in gross non-performing assets (NPAs) will be very positive given the fact that other public sector undertaking (PSU) banks have been improving their gross NPA on a sequential basis.
- Provisions are expected to remain elevated given the fact that slippages will be higher and there will be edging of NPAs, which will lead to higher provisions.
- The street expects the loan growth to remain in lower single digits or decline year-on-year (YoY) and quarter-on-quarter (QoQ) given the fact that in Q3 the loan growth declined for the first time in eight quarters.