InCred Equities - Punjab National Bank

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	427,822	439,535	508,178	574,204
Total Non-Interest Income (Rsm)	163,094	168,170	160,829	147,912
Operating Revenue (Rsm)	590,915	607,705	669,007	722,117
Total Provision Charges (Rsm)	(16,746)	(37,407)	(63,297)	(71,580)
Net Profit (Rsm)	166,302	139,052	177,751	187,420
Core EPS (Rs)	14.47	12.10	15.47	16.31
Core EPS Growth	93%	(16%)	28%	5%
FD Core P/E (x)	7.42	8.87	6.94	6.58
DPS (Rs)	2.90	2.42	3.09	3.26
Dividend Yield	2.70%	2.25%	2.88%	3.04%
BVPS (Rs)	110.8	120.0	133.1	146.3
P/BV (x)	0.97	0.89	0.81	0.73
ROE	14.2%	10.5%	12.2%	11.7%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income	427,822	439,535	508,178	574,204
Total Non-Interest Income	163,094	168,170	160,829	147,912
Operating Revenue	590,915	607,705	669,007	722,117
Total Non-Interest Expenses	(322,609)	(338,497)	(368,171)	(400,076)
Pre-provision Operating Profit	268,307	269,208	300,836	322,041
Total Provision Charges	(16,746)	(37,407)	(63,297)	(71,580)
Operating Profit After Provisions	251,561	231,800	237,539	250,461
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	251,561	231,800	237,539	250,461
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	251,561	231,800	237,539	250,461
Exceptional Items
Pre-tax Profit	251,561	231,800	237,539	250,461
Taxation	(85,259)	(92,748)	(59,789)	(63,041)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	166,302	139,052	177,751	187,420
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	166,302	139,052	177,751	187,420

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits	68.5%	69.2%	69.9%	70.6%
Avg Liquid Assets/Avg Assets	94.9%	94.8%	94.9%	95.0%
Avg Liquid Assets/Avg IEAs	109.5%	110.9%	112.1%	112.1%
Net Cust Loans/Assets
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans
Asset Risk Weighting
Provision Charge/Avg Cust Loans	0.17%	0.33%	0.50%	0.50%
Provision Charge/Avg Assets	0.10%	0.20%	0.30%	0.30%
Total Write Offs/Average Assets

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Gross Loans	10,774,746	11,989,732	13,558,778	15,333,159
Liquid Assets & Invst. (Current)	4,973,113	4,918,212	5,384,842	5,875,841
Other Int. Earning Assets
Total Gross Int. Earning Assets	15,747,858	16,907,942	18,943,620	21,209,000
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	15,747,858	16,907,942	18,943,620	21,209,000
Intangible Assets
Other Non-Interest Earning Assets	816,117	897,729	996,479	1,106,091
Total Non-Interest Earning Assets	946,651	1,032,178	1,134,962	1,248,729
Cash And Marketable Securities	1,487,198	2,056,065	2,292,902	2,557,071
Long-term Investments
Total Assets	18,181,708	19,996,186	22,371,482	25,014,800
Customer Interest-Bearing Liabilities	15,666,233	17,238,384	19,306,992	21,623,830
Bank Deposits
Interest Bearing Liabilities: Others
Total Interest-Bearing Liabilities	16,127,550	17,750,446	19,880,500	22,266,160
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	780,535	866,394	961,697	1,067,484
Total Liabilities	16,908,084	18,616,840	20,842,198	23,333,644
Shareholders Equity	1,273,623	1,379,345	1,529,285	1,681,155
Minority Interests
Total Equity	1,273,623	1,379,345	1,529,285	1,681,155

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	6.7%	2.7%	15.6%	13.0%
Operating Profit Growth	7.6%	0.3%	11.7%	7.0%
Pretax Profit Growth	91%	(8%)	2%	5%
Net Interest To Total Income	72.4%	72.3%	76.0%	79.5%
Cost Of Funds	5.27%	4.66%	4.71%	4.71%
Return On Interest Earning Assets	8.3%	7.5%	7.8%	7.8%
Net Interest Spread	3.04%	2.87%	3.07%	3.09%
Net Interest Margin (Avg Deposits)	2.91%	2.67%	2.78%	2.81%
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	6%	14%	21%	22%
Interest Return On Average Assets	2.53%	2.30%	2.40%	2.42%
Effective Tax Rate	33.9%	40.0%	25.2%	25.2%
Net Dividend Payout Ratio	20.0%	20.0%	20.0%	20.0%
Return On Average Assets	0.98%	0.73%	0.84%	0.79%

(91) 22 4161 1551 bhavik.shah@incredresearch.com

Market Data

Source: Bloomberg