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PNB shares surged to Rs 111.68 apiece, the highest level seen by the stock since early May this year. The bank on Saturday released its Q1 results, showing a 2% YoY rise in net interest income (NII) to Rs 10,798 crore.

PNB’s current account savings account deposits increased around 8% YoY to Rs 5.69 lakh crore, while total term deposits increased 9% YoY to Rs 10.21 lakh crore. Global advances, meanwhile, grew around 13% YoY to Rs 12.73 lakh crore.

The PSU lender’s return on assets (RoA) increased to 1.04% in Q1 FY27 from 0.37% in Q1 FY26, but decreased from Rs 1.06% in Q4 FY26. Return on Equity (RoE) meanwhile stood at 17.33% during the quarter under review.

PNB’s asset quality improved, with gross non-performing assets (NPAs) declining to 2.78% at the end of the June quarter, from 3.78% a year ago. Gross Non-Performing Assets (GNPA) in absolute terms declined by Rs 7,292 crore to Rs 35,381 crore from Rs 42,673 crore, while Net Non-Performing Assets (NNPA) eased by Rs 699 crore to Rs 3,433 crore from Rs 4,132 crore as on June 2025. Similarly, net NPAs, or bad loans, declined to 0.26%, as against 0.38% in the year-ago period.

JM Financial upgraded its rating on the shares of PNB to ‘Add’ from ‘Reduce’, and increased its target price to Rs 120 apiece from Rs 110 apiece. The latest target price implies more than 9% upside potential.

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The domestic brokerage noted that PNB reported a healthy Q1 FY27 earnings print with PAT rising 214% YoY, beating its estimate by 17%, driven by improving core operating performance and continued strengthening in asset quality. NII grew 2% YoY as NIM expanded 6 bps QoQ, supported by lower funding costs and continued run-down of low-yielding IBPC and corporate exposures, it said.
Loan growth remained healthy despite balance-sheet re-pricing, while management reiterated confidence in further margin improvement through FY27, aided by FCNR mobilisation and continued repricing of liabilities, JM Financial said, adding that asset quality remained resilient.“Given improving core profitability, resilient asset quality and FCNR mobilisation providing incremental support to funding, downside looks limited at ~0.8xFY28 P/BV. Accordingly, we raise our FY27E/FY28E EPS estimates by 18%/15%,” it said.

Motilal Oswal on PNB share price

Motilal Oswal Financial Services said PNB reported a mixed quarter, with earnings beat led by controlled provisions and opex, while margins improved 3 bps QoQ. Provisions came in lower, reflecting strong asset quality, while opex was lower due to fewer AS-15 provisions and a decline in PSLC costs.

Also read: HDFC Bank shares fall 5% after Q1 results. Should you buy, sell or hold the stock?

The domestic brokerage noted that PNB’s business growth remained modest, and management guided for loan growth of nearly 12-13% in FY27. Asset quality trends were healthy, with slippages showing a dip with no significant stress. It reiterated its ‘Buy’ call on the stock with a target price of Rs 135, implying a 28% upside potential.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Net interest income increased 9% YoY to Rs 7,928 crore from Rs 7,259 crore, while the bank’s net worth rose more than 14% YoY to Rs 1.4 lakh crore.

Asset quality improved on a year-on-year basis, although key ratios weakened sequentially. Net non-performing assets (NPA) declined 11% YoY to Rs 1,358 crore from Rs 1,531 crore, but increased 7.5% from Rs 1,262 crore reported in the March quarter. Gross NPA fell 8% YoY to Rs 6,122 crore, with the gross NPA ratio at 1.18% and the net NPA ratio at 0.27%. Fresh slippages during the quarter declined 27% YoY to Rs 1,321 crore.

Also Read | F&O Talk: Nifty IT gaining strong momentum, says Sudeep Shah; outlines HDFC Bank, ICICI Bank strategy after Q1 results

Should you buy, sell or hold Kotak Mahindra Bank shares?

Motilal Oswal has reiterated its Buy rating on Kotak Mahindra Bank with a target price of Rs 470, implying an upside of around 21%. The brokerage said the bank delivered a steady quarter, supported by controlled slippages and credit costs, along with stable net interest margins (NIM). It expects NIM to improve gradually as the share of unsecured and commercial loans increases, while noting that the unsecured portfolio has largely stabilised and credit costs should remain well contained.
Motilal Oswal highlighted a meaningful pickup in corporate lending, driven by better spreads and volatility in treasury markets, with the bank aiming to outpace system loan growth through a mix of organic and inorganic expansion.

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JM Financial has maintained its Add rating on Kotak Mahindra Bank with a target price of Rs 415, implying an upside of around 6.4%. The brokerage said the bank continues to benefit from steady asset quality and the acquisition of Deutsche Bank‘s India consumer banking business, although sluggish loan growth is likely to keep profitability improvement gradual. It believes the stock’s current standalone valuation of around 1.4x FY28E BVPS remains reasonable and has valued the core banking business at 1.6x FY28E BVPS while retaining its target price.
Also Read | Q1 earnings begin on a strong note as banks fuel double-digit growth
Dolat Capital has maintained its Accumulate rating on Kotak Mahindra Bank with a target price of Rs 455, an upside of 17% from current levels. The brokerage said the bank’s Q1FY27 profit after tax was largely in line with expectations, as treasury losses were offset by lower-than-expected credit costs, while return on assets (RoA) remained stable at 2.1%.
Dolat Capital’s target valuation of 1.7x FY28E core price-to-book reflects the bank’s strong liability franchise and expectation of 15% loan growth. While it expects return on equity (RoE) to remain below peers despite lower credit costs and stable margins, the brokerage believes the stock’s current valuation of 1.3x FY28E core P/B remains attractive and supports its positive stance.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Port Talbot-based Hybrisan has been acquired by Eumar Technology

Port Talbot-based chronic wound care business Hybrisan is under new ownership.

The business has been acquired by leading wound care manufacturer Eumar Technology in a deal creating a new contract development manufacturing organisation (CDMO) powerhouse in the UK

Chronic hard-to-heal wounds represent a significant and growing challenge for healthcare systems. The global advanced wound care market has experienced high levels of growth in recent years and was valued at over $20 billion in 2025.

The acquisition positions the combined business to develop and commercialise advanced wound care solutions that improve patient outcomes and support more efficient care pathways.

Founded in 2013 Hybrisan (the trading name of Universal Synergistic Holdings) has built a strong reputation in chronic wound care. Its lead product, WoundSan, is a clinically evidenced wound cleansing technology currently progressing through EU medical device regulation approval and expected to reach the market later this year.

Hybrisan will continue to operate from its headquarters in Port Talbot, with increased investment from its new owners .

Chris Mortimer, chief technology officer (formerly chief executive of Hybrisan), said: “Combining Hybrisan’s development expertise with Eumar’s manufacturing capability, infrastructure and commercial reach will allow us to accelerate innovative wound care solutions to market. The continuation of operations in Port Talbot ensures the specialist skills we have built in South Wales remain central to the group’s future.”

Euan Davidson, chairman of Eumar Technology, said: “This acquisition is central to our long-term strategy to build a leading UK medical device business.

“We are committed to investing in skilled employment and manufacturing excellence across both Herefordshire and South Wales, with the goal of creating a CDMO recognised internationally for taking innovative products from concept to commercial manufacture entirely within the UK.”

Frank Holmes (partner) and Sean David (executive) of Cardiff-based Gambit Corporate Finance advised Hybrisan’s shareholders on the transaction.

Mr David, commented: “Hybrisan’s innovative technology deserves to reach the market, which it will do through its partnership with Eumar. This transaction exemplifies the value to corporate acquirers seeking diversification, growth and competitive advantage, whilst commercialising valuable intellectual property”.

The value of the deal has not been disclosed. In 2014 the business secured a six-figure equity investment from the Development Bank of Wales.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of RISR, PFIX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

It comes after an independent report found numerous concerns

Somerset Council has appointed a new finance chief as it faces a government order to get its finances urgently in order following a damning independent report.

Lizzie Watkin will take on the role on July 31 following approval by full council. She has joined from Wiltshire Council, where she served as corporate director of resources and section 151 officer.

Ms Watkin previously worked for Somerset County Council as strategic finance manager and has also held finance leadership roles at Taunton Deane Borough Council and South Somerset District Council.

The announcement follows a ‘best value notice’ – a series of standards that ensure a council is providing value for money to local taxpayers – issued last week by the Ministry of Housing, Communities and Local Government which has piled pressure on the council to sort out its financial issues.

The notice was issued after an independent review of the council’s finances by the Chartered Institute of Public Finance and Accountancy (CIPFA).

The report identified numerous concerns around the council’s leadership and organisational culture, branding its financial management “weak” and awarding the council one out of a possible five stars.

The local authority is currently hundreds of millions of pounds in debt, largely from external borrowing via the Public Works Loans Board, which is part of the Treasury.

Ms Watkin will now be responsible for ensuring the council can balance its books at its next budget in February 2027.

James Blythe, deputy director of local government stewardship and interventions, laid out the reasons for the notice in a letter to the council’s chief executive Duncan Sharkey last week.

Mr Blythe said ministers “remain concerned” about the speed at which the council is turning its financial situation around, despite acknowledging that some initial progress had been made.

The local authority must now provide “regular written updates” to MHCLG on its progress, and the notice will remain in place until further notice, being initially reviewed in July 2027.

Liz Leyshon, the council’s deputy leader and lead member for finance, said: “As we continue to drive improvement, transformation and long-term financial sustainability, Lizzie’s expertise will be invaluable in helping us build on the progress already being made and ensuring we continue to deliver the best possible outcomes for residents.”

Last week, council leader Bill Revans admitted the government notice was a “serious step”, adding that Somerset Council would respond “positively and constructively”.

“This does not come as a surprise,” he said. “We have been transparent about the financial concerns and pressures facing this council and the scale of the challenges we face.

“We have already established an improvement advisory board to provide challenge, support and oversight of our improvement journey. This will unlock welcome additional support from the government and through the Local Government Association – though this will not involve any money.

“We remain completely responsible for making decisions locally and delivering services for the people of Somerset.”

He added: “We know there is much more work to do to strengthen our finances, governance, transformation and service performance. While progress has been made, we have never been complacent and never will be.

“I have said for some time that the way local government is funded is broken. This does not diminish our responsibility to improve, and we accept that responsibility.”

Further reports on the council’s finances will be published in the coming months, including its initial budget proposal and planned changes to its council tax support scheme.

In June, it was revealed that Somerset Council’s overall debt levels could fall beneath £1bn within five years if current patterns persist.

Andy Burnham enters Downing Street today with his first industry revolt already under way, after reports that his government could abolish the department responsible for science, technology and the funding streams thousands of growing firms depend on.

According to the Financial Times, officials have been asked to draw up plans to close the Department for Science, Innovation and Technology (DSIT) and move its responsibilities to the Department for Business and Trade and the Department for Culture, Media and Sport.

A Labour source told the FT that “it needs to be mainstreamed and there is the sense that DSIT has not been firing on all cylinders”. The sector’s response has been rather less diplomatic.

For business owners, the stakes are practical rather than presentational. DSIT sponsors UKRI, the research funding body that sits above Innovate UK grants, as well as the Government Digital Service. Any reorganisation would put the machinery behind those programmes into flux just as firms are being urged to adopt AI and invest in innovation.

That concern sits at the heart of a letter sent to the new prime minister by Julian Harris, CEO at Tech UK, and Dom Hallas, executive director at Startup Coalition, who called the proposal “the wrong change at the wrong time”.

“DSIT works because it brings researchers, AI practitioners, innovators and policymakers together in one department – a single front door that gives the tech sector clarity, pace and a government partner that understands technology and champions the sector in the Cabinet,” they wrote.

“Breaking up the work of DSIT endeavours such as the world-leading AI Safety Institute, the Sovereign AI fund, GDS and UKRI would slow momentum at a time when pace is essential for both the growth of the economy and our standing on the global stage. It also sends a terrible signal to a sector that is growing at 10% a year. This is clear from the immediate reaction of the sector to these reports thus far.

“We are supportive of your vision to bring growth to every postcode in Britain, and we want you to be able to leverage the tech sector to deliver on your ambitions to change our economy and society for the better. To do so, we should use this moment to strengthen tech leadership at the heart of government, not dismantle it.”

Matt Clifford, who served as Keir Starmer’s AI opportunities adviser, was blunter still. “This would be a big mistake,” he wrote on X. “Right now is a critical moment for tech as an economic and national security issue. Tying up our most senior science and tech officials in a reorg wastes time and energy that’s desperately needed for the actual substance.”

Labour MP Peter Fortune agreed, responding: “DSIT does need focus but it is vital we promote our excellent tech sector if we are going to encourage growth and innovation. Our AI sector (thanks to Matt for everything he has done) is amazing – but it could be even better. We need to signal our determination to lead.”

Not every founder is manning the barricades. Commenting on LinkedIn, Atif Syed, founder of Wootzano, said: “It’s definitely a bold move, but let’s be honest – DSIT is in need of a serious overhaul to radically support tech businesses on the ground. I look forward to seeing what will replace it and how the new administration intends to back our sector.”

The row lands at an awkward moment for a prime minister who has promised a “pro-business” government and has already signalled movement on tax and business rates for high street firms. Whether he can win over Britain’s entrepreneurs may depend in part on how he handles this first test.

His Cabinet is due to be announced imminently. The FT reported that Jonathan Reynolds could return as business secretary, the role he handed to Peter Kyle last autumn, while Shabana Mahmood and Ed Miliband are among those tipped for chancellor. Despite the threat to DSIT, Burnham is thought to be planning to appoint an AI minister at Cabinet level.

For SMEs, the message from the sector’s leaders is simple: whatever the Whitehall wiring diagram ends up looking like, firms need clarity on who champions technology in government before grants, standards and AI policy grind through a year of reorganisation.

Amy Ingham

Amy Ingham is a reporter at Business Matters, covering UK business news with a focus on breaking news, business policy, late payments and insolvency. She joined the magazine in 2026 after completing the NCTJ Diploma in Journalism at Harlow College’s journalism school. Her recent reporting includes British Steel’s nationalisation and its impact on SME suppliers, the decline in late payments by large firms, and Insolvency Service director disqualifications. Reach her at aingham@cbmeg.co.uk.

The government’s flagship assault on Britain’s late payment culture could end in a “car crash” unless the new rules are drafted carefully and, crucially, enforced, a former small business commissioner has warned. His evidence: thousands of firms are already breaking the payment rules we have, and not one has been prosecuted.

Philip King, who served as interim small business commissioner during the pandemic, said previous attempts to fix the problem had fallen flat largely because nobody enforced them. “Unless we enforce this stuff, do we go any further forward?” he said.

His warning lands as the government’s overhaul of commercial payment rules, billed as the most significant shake-up in more than 25 years, reaches the House of Lords on Tuesday.

For small business owners, the package promises long-overdue relief. Large companies will be required to pay smaller suppliers within 60 days, interest will fall due automatically on overdue invoices, so-called retentions will be banned in construction, and the small business commissioner will gain powers to fine companies that mistreat suppliers.

King, a veteran campaigner on the issue and former chief executive of the Chartered Institute of Credit Management, welcomed the reforms. But he cautioned: “The issue is going to be how the regulations are written. If they are drafted well, they have a good chance of success. If they’re drafted badly, then there’s a car crash.

“The secondary issue is interpretation. The move to a maximum 60 days is great, but what if companies currently on 30-day payment terms move to 60?

“There’s all sorts of risks, it needs to be done really carefully. And enforcement is really important. If there’s a clear set of rules and an accountability factor to it, I think that would push things forward.”

His scepticism is well founded. The UK’s largest businesses already have a statutory duty to report their payment practices every six months, and failing to do so is a criminal offence. Yet at best only around half of the companies that should be filing reports are doing so, thousands regularly breach the rules, and no criminal enforcement action has ever been taken.

The stakes for the SME economy are considerable. The government says slow and late payment costs the economy £11 billion a year and “chokes growth, costs jobs, and forces too many good businesses to close”.

There is a further gap that should give owner-managers pause. The new rules target the payment performance of large businesses, yet a substantial share of the problem sits between small firms themselves. “An awful lot of late payments are small company to small company, yet any business with fewer than 250 staff, which is the vast majority of UK companies, isn’t captured by it. It’s not all-encompassing and there’s a risk in that,” King said.

Peers will now try to toughen the bill. Lord Leigh of Hurley and Lord Sharpe of Epsom are due to propose amendments including more resources for the commissioner’s office, which can mediate on payment disputes, alongside measures to stop large companies delaying payments over ESG clauses and a ban on cryptocurrency payments as a contractual term.

Leigh, the co-founder of Cavendish Corporate Finance, said he would also support a “cold shoulder” provision under which the worst offenders would be shunned by government, including on public contracts.

A spokeswoman for the Department for Business and Trade said: “Too many big companies have simply not been paying on time for years. To fix that, we need to work with large businesses to make sure our ambitious reforms get small businesses the money they deserve. Our new legislation will give the commissioner stronger powers to investigate and fine companies that are not fulfilling their reporting requirements.”

Amy Ingham

Amy Ingham is a reporter at Business Matters, covering UK business news with a focus on breaking news, business policy, late payments and insolvency. She joined the magazine in 2026 after completing the NCTJ Diploma in Journalism at Harlow College’s journalism school. Her recent reporting includes British Steel’s nationalisation and its impact on SME suppliers, the decline in late payments by large firms, and Insolvency Service director disqualifications. Reach her at aingham@cbmeg.co.uk.