SBI and Axis already preferred by PEs and Citi’s latest research, PNB has long been our candidate for a size led market reach explosion in Tier 2 and 3 and now 5 and 6 towns as per RBI diktat as well.
However hard put they may be by a high interest rate scenario and their redoubtable marketing/ interface strategums of leading with first and relatively highest scores in transmission, the ensuing hostilities in the market place have long been smoothed by rent and public avarice for these public sector banks.
Another 20 basis point decline in NIMs underscores PNB’s stated peaking of NIMs in the previous Dec 2010 results. Still the bank has $5.25 bln in Interest Income alomne putting Average Weighted Funds at $136 bln for the year ended March 2011
Also strangely Indian Bank has not folowed into the disaster zone pushed by most banks in the public sector space wih a growth of 22% in NII strangely as they already hold extraordinary NIMs and a pretty small asset base.
- The public bank conundrum: PNB to pay dearly for results? (awardz.wordpress.com)
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