>PUNJAB NATIONAL BANK (INDIA INFOLINE)

■ Strong growth momentum continues in Q4 FY09; Fy09 loan growth at 29.5% yoy.

■ NIM correct by 30 bps qoq, in-line with expectations.

■ Other income remains elevated; spike in C/I ratio hurts profit growth

■ Significant reduction in NPA levels; capital adequacy improves

■ Bank taregts 23-35% loan growth and ~3.5% NIM in FY10

■ Downgrade to MP with target Rs 700; valuations have become fair post recent rally

To see full report: PNB