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Punjab National Bank is a prominent Public Sector Bank in India, trading under the stock ticker PNB. With a substantial market capitalization of Rs. 104,780.8 Crores, this financial institution offers a diverse range of banking and financial products and services.
The bank operates through several segments, including:
In terms of personal banking, Punjab National Bank provides a variety of services such as:
Additionally, the bank supports micro, small, and medium enterprises with tailored schemes and loans. It also caters to government customers and offers agricultural financing. In the corporate banking domain, services include loans against future lease rentals, working capital financing, term loans, EXIM finance, and cash management services.
Internationally, Punjab National Bank has a presence with a branch in Dubai and representative offices in Bangladesh and Myanmar. The bank provides various digital banking options, including mobile and internet banking, SMS banking, and electronic cheque deposit machines, along with payment acceptance solutions like point of sale (PoS) systems.
Founded in 1895 and headquartered in New Delhi, Punjab National Bank reported a trailing 12 months revenue of Rs. 136,134.3 Crores and generated profits amounting to Rs. 15,897.6 Crores over the past four quarters. With a revenue growth of 52.2% in the last three years, the bank distributes dividends to its investors, currently offering a yield of 2.11% per year, having returned Rs. 2.15 per share over the last year. However, it has diluted shareholder holdings by 4.4% in this period.
Overall, Punjab National Bank remains a profitable and expanding entity in the Indian banking landscape.
Balance Sheet: Strong Balance Sheet.
Dividend: Dividend paying stock. Dividend yield of 2.11%.
Growth: Good revenue growth. With 52.2% growth over past three years, the company is going strong.
Technicals: Bullish SharesGuru indicator.
Size: It is among the top 200 market size companies of india.
Smart Money: Smart money has been increasing their position in the stock.
Profitability: Recent profitability of 12% is a good sign.
No major cons observed.
Comprehensive comparison against sector averages
PNB metrics compared to Banks
| Category | PNB | Banks |
|---|---|---|
| PE | 7.24 | 8.27 |
| PS | 0.85 | 1.02 |
| Growth | 15.8 % | 9.5 % |
PNB vs Banks (2021 - 2025)
Understand Punjab National Bank ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Government of India (Through President of India) | 70.08% |
| Life Insurance Corporation of India | 9.15% |
| SBI Contra Fund | 1.72% |
Distribution across major stakeholders
Distribution across major institutional holders
Updated May 2, 2025
PNB reported a loan fraud of Rs 270.57 crore involving Gupta Power Infrastructure Ltd, which has been reported to the Reserve Bank of India, with provisions already made as per prudential norms.
The bank's stock fell 2.5% after launching a Qualified Institutional Placement (QIP) at a discounted price, indicating market concerns over the dilution of shares.
PNB's stock declined 4.59% on February 28, 2025, marking its fifth consecutive session of losses, and a 27.99% decrease over the past year, reflecting investor apprehension.
PNB reported a 25% rise in fourth-quarter profit, driven by strong demand for home loans, with net profit reaching 5.5 billion rupees for the quarter ending March 31, 2025.
The bank's asset quality improved, with gross non-performing loans dropping to 1.08% from 1.50% a year earlier, indicating better financial health.
PNB's net interest income rose by 16.2% to 7.34 billion rupees, reflecting effective management and growth in core banking operations.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Analysis of Punjab National Bank's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Corporate/Wholesale Banking | 41.9% | 14.8 kCr |
| Treasury Operations | 28.2% | 9.9 kCr |
| Retail Banking | 27.2% | 9.6 kCr |
| Other Banking Operations | 2.7% | 949.5 Cr |
| Total | 35.3 kCr |
Summary of Punjab National Bank's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Outlook and Major Points from Management:
Business Growth & Profitability:
Asset Quality & Recovery:
Digital Transformation:
Capital & Liquidity:
FY26 Considerations:
Key Risks: Rate cuts may pressure margins, but growth and recovery traction are expected to offset impacts. Focus remains on balancing growth, asset quality, and profitability.
Last updated: Feb 25
Question 1:
"Under the new CEO, will PNB's growth strategy change, and how will short-term financials be impacted? What is the outlook for NIM in Q4 and steady-state credit cost for FY26?"
Answer: The strategy remains consistent, focusing on growth and profitability. NIM (2.9-3%) is maintained via corporate loan repricing and digital initiatives. Credit costs stay low due to high PCR (96.77%) and recoveries exceeding slippages, a trend expected to continue.
Question 2:
"Can PNB sustain its business growth tempo, explain the drop in other income, and update on digital transformation?"
Answer: Credit growth (13-14% YoY) will continue via corporate sanctions and RAM sector focus. Lower other income stems from muted recovery in technical write-offs (TWO) and MTM losses. Digital adoption includes cash-flow-based MSME loans (up to Rs.25L) and mobile app transactions (91% digital share).
Question 3:
"Does other interest income include one-offs? Provide SMA details, floating provisions, NIM trajectory, and FY26 ROA outlook."
Answer: Rs.350Cr IT refund contributed to other income. SMA-1+SMA-2 totals 4% of loans. Floating provisions (Rs.750Cr) follow board policy. NIM stability relies on repricing and treasury gains. ROA (1%) guidance for FY25; FY26 depends on rate cuts and growth.
Question 4:
"How did PNB keep deposit costs flat despite high growth? Explain T-bill-linked loan share rise and AS15 provisions."
Answer: Retail term deposits (7.25% scheme) and CASA growth (38.12%) stabilized costs. T-bill-linked loans rose via short-term liquidity deployment. AS15 provisions adjusted for yield dips, with Rs.1,400Cr/quarter expected for FY25.
Question 5:
"Will FY25 recovery target (Rs.18,000Cr) be met given Q3 shortfall?"
Answer: Q4 recovery is projected at Rs.5,000-6,000Cr, including TWO recoveries (Rs.1,500-1,600Cr) and resolutions in NCLT/NARCL accounts.
Question 6:
"Will PNB migrate to 25% tax rate in FY26? Can NIM sustain amid rate cuts?"
Answer: Tax rate migration is planned for FY26. NIM (2.9-3%) guidance holds for FY25; FY26 resilience hinges on deposit repricing and growth offsetting cuts.
Question 7:
"How will PNB improve CASA growth and manage operating costs?"
Answer: CASA growth leverages segment-specific products and regional presence. Operating costs focus on non-interest income (cash management, supply chain financing).
Question 8:
"What provisions exist for non-NPA books, and what's the TWO recovery outlook?"
Answer: Standard accounts follow RBI-mandated provisioning (0.4%). TWO recovery (Rs.91,000Cr book) continues via NCLT/NARCL resolutions, with Rs.1,500Cr+ quarterly targets.
Question 9:
"How will rate cuts impact margins, and what's FY26 growth guidance?"
Answer: Minimal near-term margin impact; growth (12-13% FY25) offsets cuts. FY26 guidance post-March board strategy meet.
Question 10:
"Explain Q3 provision write-backs and future visibility."
Answer: Write-backs include NPA recoveries, restructured account reversals (Rs.447Cr), and NPI adjustments (Rs.190Cr). Similar write-backs (Rs.300-400Cr) expected in Q4.
Valuation | |
|---|---|
| Market Cap | 1.15 LCr |
| Price/Earnings (Trailing) | 7.2 |
| Price/Sales (Trailing) | 0.84 |
| EV/EBITDA | 1.13 |
| Price/Free Cashflow | -4.14 |
| MarketCap/EBT | 4.68 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 1.36 LCr |
| Rev. Growth (Yr) | 15.59% |
| Rev. Growth (Qtr) | 0.50% |
| Earnings (TTM) | 15.9 kCr |
| Earnings Growth (Yr) | 106.36% |
| Earnings Growth (Qtr) | 4.89% |
Profitability | |
|---|---|
| Operating Margin | 19.7% |
| EBT Margin | 17.98% |
| Return on Equity | 0.92% |
| Return on Assets | 0.00% |
| Free Cashflow Yield | -24.17% |
Investor Care | |
|---|---|
| Dividend Yield | 2.11% |
| Dividend/Share (TTM) | 2.15 |
| Shares Dilution (1Y) | 4.38% |
| Diluted EPS (TTM) | 15.1 |
Financial Health | |
|---|---|
| Debt/Equity | 0.00 |
| Debt/Cashflow | 0.00 |
Detailed comparison of Punjab National Bank against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| SBIN | State Bank Of IndiaPublic Sector Bank | 7.12 LCr | 6.49 LCr | +2.85% | -3.85% | 8.81 | 1.1 | +14.51% | +24.82% |
| BANKBARODA | Bank Of BarodaPublic Sector Bank | 1.29 LCr | 1.51 LCr | +7.39% | -11.02% | 6.37 | 0.85 | +10.17% | +9.00% |
| UNIONBANK | Union Bank of IndiaPublic Sector Bank | 96.29 kCr | 1.27 LCr | -0.76% | -18.44% | 5.93 | 0.76 | +11.51% | +22.97% |
| CANBK | Canara BankPublic Sector Bank | 87.85 kCr | 1.5 LCr | +6.31% | -84.59% | 5.11 | 0.59 | +12.15% | +20.93% |
| INDIANB | Indian BankPublic Sector Bank | 75.17 kCr | 70.32 kCr | +5.36% | +1.50% | 7.3 | 1.07 | +14.19% | +40.42% |