Goldman Sachs cuts Punjab National Bank shares to ‘neutral’

Goldman expects PNB's impaired assets to increase to 15.9 percent by the end of fiscal 2014.

Written by Reuters | Published:July 3, 2013 12:00 pm

Goldman Sachs downgrades Punjab National Bank (PNB) to “neutral” from “buy” and cut its target price to 780 rupees from 900,citing a weak economic environment and the elevated stress asset levels at the lender.

* “We believe current valuations adequately reflect the lower return profile we expect and a re-rating is unlikely until one or both of these factors show decisive recovery,” Goldman said in a note dated Tuesday.

* Goldman expects PNB’s impaired assets to increase to 15.9 percent by the end of fiscal 2014,from 14.5 percent in fiscal 2013,the highest in its coverage.

* PNB’s shares are down 4.3 percent at 627 rupees as of 0534 GMT.

For all the latest News Archive News, download Indian Express App

    Live Cricket Scores & Results