InvestorQ : rs 95 target to pnb how manny time
sibsankar nandy made post

rs 95 target to pnb how manny time

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Radhika Arya answered.
1 year ago

In the latest quarter, PNB did surprise the markets with a net profit of Rs.1019 crore but that was largely on the back of lower provisions. While most of the other banks have a problem of bad assets, PNB also has forensic problems pertaining to major frauds on its books as we have seen in the past. For example, we saw the $2 billion fraud committed by Nirav Modi in terms of fake letters of credit drawn by PNB. Secondly, the bank is also involved in a major fraud which it has admitted in the case of Bhushan Power and that impact is also yet to impact.

I am not sure what is your logic behind buying PNB but the target of Rs.95 may be difficult unless there is a very sharp turnaround in the fortunes of the bank in the next quarter. Rather you should focus on PSU banks like BOB and SBI if you really want to buy PSU banks.