New Delhi: PNB's share price increased by over 7 pc in morning trading on Monday following the announcement of Q1 results released over the weekend.
On Monday, Punjab National Bank (PNB) started trading on the NSE at Rs 124.86, which was approximately 4 pc more than its closing price of Rs 119.95. PNB's stock price then went on to reach intraday highs of RS 128.66, resulting in an increase of over 6 pc .The Punjab National Bank (PNB) announced its highest-ever quarterly standalone profit of Rs 3,252 crore, driven by rising interest income and a decline in non-performing assets. There was a 159 per cent increase in net profit compared to the previous year.
The net interest income (NII), which is the gap between interest earned and paid, rose by 10.2pc to Rs 10,476.2 crore in the first quarter of the current fiscal year compared to Rs 9,504.3 crore in the same period last year. PNB's net profit for Q1FY25 was slightly lower than Jefferies' predictions because of increased operating expenses related to PSLCs, but this is not expected to happen again. PSLCs are certificates issued by banks in exchange for priority sector loans.
Jefferies highlighted the main positive as lower slippages at 0.8 pc , despite being balanced out by increased recoveries. Additionally, Jefferies predicts that credit costs will remain low for 1-2 years, given the current coverage rate of 88 pc. ROA is projected to be 0.9 pc in FY26, with the possibility of a decrease in the tax rate increasing ROA. Jefferies finds Punjab National Bank (PNB) shares to be a good buy at Rs150 with a valuation of 1.1 times adjusted Book values based on FY25 estimates.
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