Result Update on PNB: Results are WORSE than our estimates. Has shown NP of 50cr AFTER TAX WRITEBACK of 900 crores. It means ACTUAL LOSS ( before tax write back) would have been whopping 850 crores. GNPA , as estimated by us, have zoomed to 8.47%.
Stock is bound to slide. You remember that we were only one who had given Maruti Febexp TP 3740 which already surpassed and much earlier.
PNB will also slide. As per our estimate, Q4 will should be equally bad as these banks are allocating their NPAs over 2 quarters