pnb

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

Particulars (Rs cr) 1QFY11 4QFY10 % chg (qoq) 1QFY10 % chg (yoy)

Net interest income 2,619 2,498 4.8 1,862 40.6

Pre-prov. profit 2,098 2,332 (10.0) 1,569 33.7

PAT 1,068 1,135 (5.9) 832 28.4

Source: Company, Angel Research

Punjab National Bank (PNB) reported flat net profit of Rs1,068cr for 1QFY2011, though better than our estimate of Rs908cr mainly due to higher growth in NII and non-interest income. However, the pressure on asset quality was the key negative in 1QFY2011 performance. At current levels, we believe that the stock is expensive, considering potential downside to RoE. Hence, we maintain a Reduce on the stock. Strong core performance but pressure on asset quality: Advances increased by 24.6% yoy (5.5% qoq) to Rs1,96,870cr, driven by the 28.3%, 36.6% and 25.2% yoy growth recorded in the agriculture, SME and corporate segments, respectively. NII increased by 40.6% yoy and 4.8% qoq to Rs2,619cr. The core non-interest income and recovery from written-off account grew by 10.9% yoy and 18.6% yoy, respectively. PNB’s gross NPAs increased, in absolute terms, by 12.4% qoq to Rs3,613cr and net NPAs rose by 30.7% qoq to Rs1,283cr. The bank additionally restructured Rs878cr of loans during the quarter. The gross slippage spiked to Rs1,216cr (Rs534cr), indicating an annualised slippage ratio of 3.0% (1.8%). Outlook and Valuation: We believe that PNB is among the more profitable and competitive PSBs, with relatively strong RoE prospects. We have a positive medium-term outlook on the bank, due to its superior CASA ratio and high core income component in earnings. We believe that the bank’s core competitiveness in retail deposits is underpinned by the relatively high concentration of its business in rural areas, especially in North India, that are relatively underpenetrated by other banks. Since 4QFY2010, we were concerned about the bank’s high growth in advances in the earlier quarters at relatively high yields, which could lead to relatively higher asset-quality deterioration and yield compression for the bank. At the CMP, the stock is trading at 7.1x FY2012E EPS of Rs148.5 and 1.4x FY2012E Adjusted Book Value of Rs729, which we believe leaves little margin of safety from potential downside to RoE. Hence, we maintain a Reduce rating on the stock.

Key Financials Y/E March (Rs cr) FY2009 FY2010 FY2011E FY2012E

NII 7,031 8,523 10,450 12,144

% chg 27.0 21.2 22.6 16.2

Net Profit 3,091 3,905 4,067 4,683

% chg 50.9 26.4 4.1 15.1

NIM (%) 3.3 3.2 3.3 3.3

EPS (Rs) 98.0 123.9 129.0 148.5

P/E (x) 10.7 8.5 8.2 7.1

P/ABV (x) 2.5 2.1 1.7 1.4

RoA (%) 1.4 1.4 1.3 1.2

RoE (%) 25.8 26.6 22.8 22.0


REDUCE CMP Rs1,053 Target Price Rs947

Investment Period 12 Months Stock Info Sector Banking

Market Cap (Rs cr) 33,206

Beta 0.7

52 Week High / Low 1,103/648

Avg. Daily Volume 90,426

Face Value (Rs) 10

BSE Sensex 18,078

Nifty 5,431

Reuters Code PNBK.BO

Bloomberg Code PNB@IN

Shareholding Pattern (%) Promoters 57.8

MF / Banks / Indian Fls 18.2

FII / NRIs / OCBs 19.1

Indian Public / Others 4.9

Abs. (%) 3m 1yr 3yr

Sensex 2.2 17.6 18.7

PNB 2.7 45.0 110.3

Vaibhav Agrawal 022 – 4040 3800 Ext: 333

[email protected]

Amit Rane 022 – 4040 3800 Ext: 326

[email protected]

Shrinivas Bhutda 022 – 4040 3800 Ext: 316

[email protected]

1QFY2011 Result Update | Banking

July 27, 2010

Punjab National Bank Performance Highlights

Punjab National Bank | 1QFY2011 Result Update

July 27, 2010 2

Exhibit 1: 1QFY2011 performance

Particulars (Rs cr) 1QFY2011 4QFY2010 % chg (qoq)

1QFY2010 % chg (yoy)

Interest earned 5,992 5,608 6.9 5207 15.1

Interest expenses 3,373 3,110 8.5 3346 0.8

Net interest income 2,619 2,498 4.8 1862 40.6

Non-interest income 872 935 (6.7) 970 (10.2)

Total income 3,490 3,433 1.7 2832 23.2

Operating expenses 1,392 1,100 26.5 1263 10.2

Pre-prov. profit 2,098 2,332 (10.0) 1569 33.7

Provisions & cont. 534 622 (14.1) 302 77.0

PBT 1,564 1,711 (8.6) 1268 23.4

Prov. for taxes 496 576 (13.9) 436 13.8

PAT 1,068 1,135 (5.9) 832 28.4

EPS (Rs) 33.9 36.0 (5.9) 26.4 28.4

Cost-to-income ratio (%) 39.9 32.0

44.6

Effective tax rate (%) 31.7 33.6

34.4

Net NPA (%) 0.7 0.5

0.2


Exhibit 2: 1QFY2011 Actual v/s Angel estimates Particulars (Rs cr) Actual Estimates Var. (%)

Net interest income 2,619 2,429 7.8

Non-interest income 872 757 15.1

Total income 3,490 3,186 9.5

Operating expenses 1,392 1,266 9.9

Pre-prov. profit 2,098 1,920 9.3

Provisions & cont. 534 562 (4.9)

PBT 1,564 1,358 15.2

Prov. for taxes 496 450 10.1

PAT 1,068 908 17.7



July 27, 2010 3

Advances growth

Advances increased by 24.6% yoy (5.5% qoq) to Rs1,96,870cr, driven by a 28.3%, 36.6% and 25.2% yoy growth in the agriculture, SME and corporate segments, respectively. Deposits grew by 16.6% yoy to Rs2,55,335cr in 1QFY2011. CASA deposits grew at a healthy 24.3% yoy, taking the CASA ratio to 40.9% (40.8% in 4QFY2010 and 38.3% in 1QFY2010).

Exhibit 3: Trend in advances and deposits


Exhibit 4: Domestic advances break-up (1QFY2011)


67 68 69 70 71 72 73 74 75 76 77 78

-

50,000

100,000

150,000

200,000

250,000

300,000

3Q

FY09

4Q

FY09

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

Deposits (LHS) Advances (LHS) Credit-Deposit ratio (%) (RHS)(Rs cr) (%)

Agri16%

Retail10%

MSME11%

Medium & Large Corporates

40%

Comm. Real Estate

6%

Services & Others17%


July 27, 2010 4

Exhibit 5: Trend in CASA deposits


Sequential NIMs down marginally

During 1QFY2011, NII increased by 40.6% yoy and 4.8% qoq to Rs2,619cr. Theyield on advances increased by 6bp sequentially to 10.28%, however, cost of deposits increased at higher rate by 14bp sequentially to 5.02%. As a result, reported NIMs declined marginally by 5bp sequentially to 3.94%. The impact of daily interest payment on savings deposits was about 10bp.

Exhibit 6: Trend in quarterly reported NIM


37 39 38 38 40 41 41

-

10

20

30

40

50

3Q

FY0

9

4Q

FY0

9

1Q

FY1

0

2Q

FY1

0

3Q

FY1

0

4Q

FY1

0

1Q

FY1

1

CASA ratio(%)

3.6

3.1

3.7 3.6

3.3 3.2 3.5

3.6

4.0 3.9

2.0

2.5

3.0

3.5

4.0

4.5

4Q

FY08

1Q

FY09

2Q

FY09

3Q

FY09

4Q

FY09

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

Reported NIM(%)


July 27, 2010 5

Non-interest income declines yoy but improves sequentially

The non-interest income declined 10.2% yoy to Rs872cr, driven by a 66.2% yoy reduction in treasury gains. The core non-interest income and recovery from written-off accounts grew by 10.9% yoy and 18.6% yoy, respectively.

Asset quality under pressure

PNB’s gross NPAs increased in absolute terms by 12.4% qoq to Rs3,613cr and net NPAs rose by 30.7% qoq to Rs1,283cr. The gross and net NPA ratios deteriorated to 1.8% and 0.7% (as against 1.7% and 0.5% respectively, in 4QFY2010), respectively. The bank’s provision coverage ratio including technical write-offs stood at 77.6% (81.2% in 4QFY2010 and 92.9% in 1QFY2010). PNB has cumulatively restructured Rs12,973cr of its loans till date (6.6% of loans, 68% of the net worth). The bank additionally restructured Rs878cr of loans during the quarter. The gross slippage spiked to Rs1,216cr (Rs534cr), indicating an annualised slippage ratio of 3.0% (1.8%). Till date, Rs1,038cr worth of loans have slipped into NPAs from the restructured accounts (8% of the total restructuring), of which Rs263 slipped during the current quarter. Management has indicated a broad range of 10-15% as expected slippages from the restructured accounts.

Exhibit 7: Trend in asset quality

Source: Company, Angel Research, Note: NPA coverage % excluding technical write-offs

Increased NPA provisions

The bank made provisions of Rs550cr towards the NPAs in 1QFY2011, compared to Rs462cr in 4QFY2010 and Rs269cr in 1QFY2010. Provision for investments stood at Rs14cr, compared to a write-back of Rs50cr in 1QFY2010 (due to the low interest rate environment in 1QFY2010). The bank’s SLR stood at 25.1%. Out of the total investment book of Rs81,036cr, the bank’s AFS portfolio constituted 18.2%, with a modified duration of 2.2 years.

40.0

50.0

60.0

70.0

80.0

90.0

100.0

-0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

1QFY

08

2QFY

08

3QFY

08

4QFY

08

1QFY

09

2QFY

09

3QFY

09

4QFY

09

1QFY

10

2QFY

10

3QFY

10

4QFY

10

1QFY

11

Gross NPA % (LHS) Net NPA % (LHS) Provision Coverage % (RHS)(%) (%)


July 27, 2010 6

Operating cost under control

Employee cost increased by 52.4% sequentially to Rs995cr on account of provisions for pension fund (Rs125cr), gratuity fund (Rs125cr) and towards AS-15 (Rs107cr). Other operating expenses increased by 11.7% yoy to Rs397cr. As a result, total operating cost increased by 10.2% yoy to Rs1,392cr. The cost-to-income ratio of the bank stood at 39.9% (from 32.1% in 4QFY2010 and 44.6% in 1QFY2010). Exhibit 8: Trend in productivity


Comfortable capital adequacy

PNB’s CAR stood at a healthy 13.8% at the end of 1QFY2011, with a Tier-I ratio of 8.7%. Tier-I capital constituted 63.1% of the bank’s CAR.

Exhibit 9: Comfortable capital adequacy


48 51

48

40

48

42

38

43 45

42 41

32

40

20

25

30

35

40

45

50

55

1Q

FY08

2Q

FY08

3Q

FY08

4Q

FY08

1Q

FY09

2Q

FY09

3Q

FY09

4Q

FY09

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

Cost-to-Income ratio(%)

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

Tier-I CAR Tier-II CAR(%)


July 27, 2010 7

Investment Arguments

Relatively higher YoA could lead to relatively higher asset quality deterioration: The yield on advances of the bank increased by 49bp in 9MFY2010 over FY2008 levels, as against an average decrease of 5bp for the PSU banks. This gap reduced in 4QFY2010 indicating unsustainable yields for PNB. PNB has cumulatively restructured Rs12,096cr of loans till date (6.5% of loans, 75% of the net worth) which is higher than the industry standards. In our view, the bank’s strategy of high growth in advances at relatively high yields could contribute to relatively higher asset quality deterioration and NIM compression for the bank going forward.

Strong CASA legacy, but losing market share: PNB has a structural advantage of a high CASA ratio of 40.8%, which is driven by strong rural and semi-urban presence, especially in North India (total of 4,707 branches and 2,910 ATMs). That said, the bank is losing market share like other PSBs (except SBI) on account of slow branch expansion and competition from the private banks -savings market share down by 50bp to 7.1% over FY2007-10.

Expensive valuations: The stock is trading at 1.4x FY2012E ABV of Rs729, which is expensive considering its 5-year range of 1.0-1.5x and median of 1.3x. While we believe the bank can deliver healthy core RoEs of 17-18% due to its strong legacy, actual RoEs are unsustainably high at 26.6%. In our view, super-normal RoEs cannot be sustainably earned through higher-than-sector average risk-adjusted yield on assets and tend to decline in subsequent years either through an increase in NPA costs or decline in yields. We believe that current valuations fairly reflect PNB’s structural positives, but do not provide a sufficient margin of safety from potential near-term asset quality pressures/decline in asset yields. Hence, we maintain a Reduce rating on the stock, with a Target Price of Rs947.


July 27, 2010 8

Exhibit 10: Key assumptions

Particulars (%) Earlier estimates Revised estimates

FY2011E FY2012E FY2011E FY2012E

Credit growth 19.0 18.0 22.0 18.0

Deposit growth 19.0 18.0 19.0 18.0

CASA ratio 40.2 39.4 40.2 39.4

NIM 3.3 3.2 3.3 3.3

Other income growth (15.0) 15.2 (15.1) 15.1

Growth in staff expenses 17.0 19.0 17.0 19.0

Growth in other expenses 13.0 19.0 13.0 19.0

Slippages 1.8 1.7 1.8 1.7

Coverage ratio 69.2 68.9 70.4 70.1

Treasury gain/(loss) (% of investments) 0.1 0.1 0.1 0.1


Exhibit 11: Change in estimates

Particulars (Rs cr) FY2011E FY2012E

Earlierestimates

Revised estimates

% chgEarlier

estimatesRevised

estimates % chg

NII 10,362 10,450 0.9 11,948 12,144 1.6

Non-interest income 3,030 3,026 (0.1) 3,489 3,483 (0.2)

Total income 13,392 13,477 0.6 15,437 15,627 1.2

Operating expenses 5,506 5,506 - 6,552 6,552 -

Pre-prov. profit 7,886 7,971 1.1 8,885 9,075 2.1

Provisions & cont. 1,812 1,809 (0.2) 1,946 1,980 1.7

PBT 6,074 6,162 1.5 6,939 7,095 2.3

Prov. for taxes 2,065 2,095 1.5 2,359 2,412 2.3

PAT 4,009 4,067 1.5 4,580 4,683 2.3


Exhibit 12: P/ABV band


0

200

400

600

800

1000

1200

1400

1600

May

-02

Oct

-02

Mar

-03

Aug

-03

Jan-

04

Jun-

04

Nov

-04

Apr

-05

Sep-

05

Feb-

06

Jul-

06

Dec

-06

May

-07

Oct

-07

Mar

-08

Aug

-08

Jan-

09

Jun-

09

Nov

-09

Apr

-10

Sep-

10

Feb-

11

Price 0.25x 0.65x 1.05x 1.45x 1.85x


July 27, 2010 9

Exhibit 13: Recommendation summary

Company Reco CMP (Rs)

Tgt. price (Rs)

Upside (%)

FY2012E P/ABV (x)

FY2012E Tgt P/ABV (x)

FY2012E P/E (x)

FY10-12E CAGR in EPS (%)

FY2012ERoA (%)

FY2012E RoE (%)

AXISBK Buy 1,382 1,688 22.1 2.6 3.2 13.7 27.4 1.6 20.5

HDFCBK Buy 2,066 2,514 21.7 3.3 4.0 17.2 36.5 1.7 20.6

ICICIBK Buy 924 1,145 23.9 1.8 2.2 15.3 29.2 1.4 15.1

YesBk Neutral 300 - - 2.4 - 15.1 18.7 1.3 17.1

SIB Neutral 186 - - 1.1 - 6.6 17.1 1.0 17.8

FedBk Accumulate 346 371 7.2 1.0 1.1 7.4 31.4 1.4 14.6

SBI Accumulate 2,435 2,596 6.6 1.4 1.6 10.7 25.7 1.0 19.5

BOI Neutral 396 - - 1.3 - 7.7 24.3 0.8 17.3

CorpBk Neutral 570 - - 1.1 - 6.1 6.6 0.9 18.5

IndBk Accumulate 223 236 5.8 1.0 1.1 5.5 7.6 1.3 21.0

DenaBk Buy 99 115 16.8 0.8 1.0 4.5 10.9 0.9 18.4

IOB Accumulate 115 125 8.7 0.8 0.9 5.8 23.8 0.6 14.6

OBC Neutral 365 - - 1.0 - 6.1 15.0 0.9 16.6

PNB Reduce 1,053 948 (10.0) 1.5 1.3 7.2 8.3 1.2 21.6

UnionBk Neutral 323 - - 1.3 - 5.7 17.1 1.1 24.1

UcoBk Buy 91 112 22.9 0.8 1.0 3.9 12.0 0.8 23.8



July 27, 2010 10

Income statement

Y/E March (Rs cr) FY2006 FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E

Net Interest Income 4,667 5,515 5,534 7,031 8,523 10,450 12,144

- YoY Growth (%) 16.5 18.2 0.4 27.0 21.2 22.6 16.2

Other Income 1,521 1,730 1,998 2,920 3,565 3,026 3,483

- YoY Growth (%) (18.0) 13.8 15.4 46.2 22.1 (15.1) 15.1

Operating Income 6,187 7,245 7,532 9,951 12,088 13,477 15,627

- YoY Growth (%) 5.6 17.1 4.0 32.1 21.5 11.5 16.0

Operating Expenses 3,023 3,326 3,525 4,206 4,762 5,506 6,552

- YoY Growth (%) 1.6 10.0 6.0 19.3 13.2 15.6 19.0

Pre - Provision Profit 3,164 3,919 4,006 5,744 7,326 7,971 9,075

- YoY Growth (%) 9.6 23.8 2.2 43.4 27.5 8.8 13.9

Prov. & Cont. 1,130 1,751 710 981 1,424 1,809 1,980

- YoY Growth (%) 34.7 54.9 -59.4 38.1 45.1 27.1 9.5

Profit Before Tax 2,034 2,168 3,296 4,763 5,903 6,162 7,095

- YoY Growth (%) (0.6) 6.6 52.0 44.5 23.9 4.4 15.1

Prov. for Taxation 595 628 1,247 1,673 1,997 2,095 2,412

- as a % of PBT 29.2 29.0 37.8 35.1 33.8 34.0 34.0

PAT 1,439 1,540 2,049 3,091 3,905 4,067 4,683

- YoY Growth (%) 2.1 7.0 33.0 50.9 26.4 4.1 15.1

Balance sheet Y/E March (Rs cr) FY2006 FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E

Share Capital 315 315 315 315 315 315 315

Reserves & Surplus 9,061 10,120 12,003 14,338 17,408 20,628 24,316

Deposits 119,685 139,860 166,457 209,761 249,330 296,702 350,109

- Growth (%) 16.0 16.9 19.0 26.0 18.9 19.0 18.0

Borrowings 6,687 1,949 5,447 4,374 19,262 22,922 27,048

Tier 2 Capital 1,935 3,695 6,165 8,085 0 0 0

Other Liab. & Prov. 7,584 6,484 8,633 10,045 10,318 12,425 14,743

Total Liabilities 145,267 162,423 199,020 246,919 296,633 352,993 416,532

Cash Balances 23,395 12,372 15,258 17,058 18,328 20,769 26,258

Bank Balances 1,397 3,273 3,573 4,355 5,146 6,124 7,226

Investments 41,055 45,190 53,992 63,385 77,724 88,024 102,221

Advances 74,627 96,597 119,502 154,703 186,601 227,653 268,631

- Growth (%) 23.5 29.4 23.7 29.5 20.6 22.0 18.0

Fixed Assets 1,030 1,010 2,316 2,397 2,513 2,901 3,321

Other Assets 3,763 3,981 4,381 5,020 6,320 7,521 8,875

Total Assets 145,267 162,423 199,020 246,919 296,633 352,993 416,532

- Growth (%) 15.0 11.8 22.5 24.1 20.1 19.0 18.0


July 27, 2010 11

Ratio analysis Y/E March FY2006 FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E

Profitability ratios (%)

NIMs 3.6 3.7 3.2 3.3 3.2 3.3 3.3

Cost to Income Ratio 48.9 45.9 46.8 42.3 39.4 40.9 41.9

RoA 1.1 1.0 1.1 1.4 1.4 1.3 1.2

RoE 17.0 16.0 19.6 25.8 26.6 22.8 22.0

B/S ratios (%)

CASA Ratio 49.0 46.2 43.0 38.8 40.8 40.2 39.4

Credit/Deposit Ratio 62.4 69.1 71.8 73.8 74.8 76.7 76.7

CAR 12.0 12.3 13.0 11.7 13.0 8.8 8.7

- Tier I 10.1 8.9 8.5 7.5 8.4 7.8 7.8

Asset Quality (%)

Gross NPAs 4.0 3.4 2.7 1.6 1.7 1.4 1.2

Net NPAs 0.3 0.8 0.6 0.2 0.5 0.4 0.4

Slippages 1.4 2.7 2.0 1.4 1.8 1.8 1.7

Loan Loss Prov./Avg. Assets

0.2 0.4 0.2 0.4 0.4 0.5 0.4

Provision Coverage 93.3 78.6 77.3 89.5 69.5 70.4 70.1

Per Share Data (Rs) EPS 45.6 48.8 65.0 98.0 123.9 129.0 148.5

ABVPS 287.8 321.6 342.0 416.7 509.1 612.1 728.7

DPS 9.0 10.0 13.0 20.0 22.0 23.0 27.0

Valuation Ratios PER (x) 23.1 21.6 16.2 10.7 8.5 8.2 7.1

P/ABVPS (x) 3.7 3.3 3.1 2.5 2.1 1.7 1.4

Dividend Yield 0.9 0.9 1.2 1.9 2.1 2.2 2.6

DuPont Analysis (%) NII 3.44 3.58 3.06 3.2 3.1 3.2 3.2

(-) Prov. Exp. 0.83 1.14 0.39 0.4 0.5 0.6 0.5

Adj. NII 2.60 2.45 2.67 2.7 2.6 2.7 2.6

Treasury 0.34 0.24 0.24 0.3 0.3 0.0 0.0

Int. Sens. Inc. 2.94 2.69 2.91 3.0 2.9 2.7 2.7

Other Inc. 0.78 0.88 0.86 1.0 1.0 0.9 0.9

Op. Inc. 3.72 3.57 3.77 4.0 3.9 3.6 3.5

Opex 2.23 2.16 1.95 1.9 1.8 1.7 1.7

PBT 1.50 1.41 1.82 2.1 2.2 1.9 1.8

Taxes 0.44 0.41 0.69 0.8 0.7 0.6 0.6

RoA 1.06 1.00 1.13 1.4 1.4 1.3 1.2

Leverage (x) 16.05 16.01 17.27 18.6 18.5 18.2 18.1

RoE 17.01 16.03 19.58 25.8 26.6 22.8 22.0


July 27, 2010 12

Research Team Tel: 022 - 4040 3800 E-mail: [email protected] Website: www.angeltrade.com DISCLAIMER

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly.

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Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement Punjab National Bank 1. Analyst ownership of the stock No 2. Angel and its Group companies ownership of the stock Yes 3. Angel and its Group companies' Directors ownership of the stock No 4. Broking relationship with company covered No Note: We have not considered any Exposure below Rs 1 lakh for Angel, its Group companies and Directors. Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%) Reduce (-5% to 15%) Sell (< -15%)

pnb

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