Non-Core Divestures, Recoveries To Address Capital Constraints And Growth. Punjab National Bank (PNB) reported 4QFY19 results with the key pointers being (1) Higher than expected loss worsens capital positioning; non-core asset divestures and recoveries to help in garnering capital and address growth. (2) Excluding IL&FS and slippages from existing NPA accounts, fresh slippages were mostly from medium sized accounts; FY20 recoveries to be similar as FY19 (a) RWA density indicates improvement in RWA profile and optimal capital utilization. (See comprehensive analyst meet takeaways on page 2 for significant incremental colour) Per se, on the key P&L items, PNB posted NII growth of 37% YoY at Rs42,003mn, PPOP was back in the black at Rs28,612mn and a loss of Rs47,496mn versus a loss of Rs134,169mn in the corresponding quarter last year. We have revised our estimates for FY20/FY21 and retained Accumulate rating on PNB, revising our target price to Rs92 (from Rs95 earlier), valuing the stock at 0.8x standalone FY21E P/ABV and ascribing a value of Rs26 for subsidiaries.