PNB Past Vs Future:What makes us bullish on PNB
In last decade, PNB ( and other PSBs) fell in trouble as loans were given indiscriminately either to industries/sectors which were not doing well due to various factors ( excess capacity, throes of recession in particular industry, long gestation, capex heavy) and/or companies/promoters without A Rating and without creditable track record. As a result, loans given in sectors like Infrastructure, textile, metal, chemical etc became NPAs. However in recent past, picture has changed and most of sectors which had become NPAs and were facing losses, have turned around. Not only turnaround but these sectors now reporting LIFE TIME HIGH margins. Hence PNB which has big exposure to such industries is now main beneficiary.
Sector wise exposure of PNB:
✅ Infrastructure 98608 Cr
✅Metals 29379 Cr
✅Textile 12636 Cr
✅Chemicals 9543 Cr
All 4 sectors doing extremely well. And hence, there is no likelihood of above becoming NPA in future but even past stressed accounts should become standard
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