Kotak Institutional Equities and J.P. Morgan raised their Punjab National Bank targets after stronger quarterly profit, improved margins and steady loan growth, while Federal Bank and Crompton retained bullish broker views.
Brokerages turned more positive on Punjab National Bank after the lender reported a stronger second quarter, with Kotak Institutional Equities and J.P. Morgan both lifting their price targets and pointing to better profitability, sturdy loan growth and improving margins. Kotak kept its “Add” call and raised its target to Rs 130 from Rs 125, while J.P. Morgan retained an “Overweight” view and moved its target to Rs 134 from Rs 129. The fresh calls add to a broader run of upbeat commentary around earnings-sensitive banking and consumer names.
Punjab National Bank said standalone net profit rose 12.8% from a year earlier to Rs 5,532 crore in the September quarter, while net interest income increased 10.8% to Rs 11,601 crore. Net interest margin improved to 2.58% from 2.50% in the previous quarter, helped by stronger lending yields and lower funding costs, according to the brokerage notes. J.P. Morgan also highlighted healthy advances growth across international, SME and retail books, as well as a larger mix of retail, agriculture and MSME loans, which can support earnings resilience over time.
Asset quality remained a source of comfort. PNB reported gross non-performing assets of 2.55% and net NPAs of 0.25%, figures that suggest the lender has kept bad-loan stress under control even as it grows. Still, the rise in fresh slippages on a sequential basis remains something investors will watch closely, especially if credit costs begin to pick up again.
Kotak also stayed constructive on Federal Bank, maintaining its “Add” rating and a target of Rs 375 after the lender posted a record quarterly profit of Rs 1,386 crore, up 45.1% year on year. The bank’s net interest income climbed 26.4% to Rs 3,153 crore, and margin expanded to 3.32%. Separate reporting by the Financial Express showed gross NPAs at a decade low of 1.32%, with total business crossing Rs 6.4 lakh crore and advances above Rs 3 lakh crore.
Crompton Greaves Consumer Electricals also remained on Kotak’s bullish list, with the brokerage keeping a “Buy” rating and lifting its target to Rs 350. The company’s consolidated net profit jumped 65% to Rs 124.39 crore, while revenue rose 18.2% to Rs 2,263 crore. Growth was supported by demand in fans, pumps, lighting and Butterfly appliances, alongside margin gains from price increases, cost discipline and operating leverage. Exports and market-share gains added to the momentum, reinforcing the view that the company is building on a stronger earnings base.
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