PNB Shares Soar with 53% Yearly Return

PNB Shares Soar with 53% Yearly Return

VoM News Desk | December 7, 2023 | 04:03 PM IST | Breaking News | Follow on Google News

PNB Shares Soar with 53% Yearly Return

PNB Shares Soar with 53% Yearly Return

Punjab National Bank (PNB) has demonstrated remarkable performance this year, delivering a substantial 53% return to its shareholders. The stock, currently valued at ₹86.40, has consistently provided robust yearly returns, ranking as the top gainer in the Nifty Bank index with a 55.4% yearly return.

Sharekhan’s Positive Outlook and Growth Potential

Despite its impressive performance, Sharekhan, a domestic brokerage firm, sees further growth potential for PNB. The bank’s return ratios, previously subdued compared to peers, are expected to improve. Sharekhan highlights factors such as enhanced asset quality, a strong outlook, and a reduction in retirement-related provisions contributing to future growth.

Anticipated Improvements and Ratings

PNB aims for NNPL <1% and plans to reduce most of the restructured book by the end of FY24E. Sharekhan maintains a ‘buy’ rating on the stock with a target price of ₹105, anticipating a 22% upside from its current trading price. The brokerage foresees improved return ratios, expecting return on assets (RoA) and return on equity (RoE) to reach 0.9% and 12%, respectively, in FY25E.

Q2FY24 Performance Highlights

In Q2FY24, PNB reported robust financials, with a 20% YoY and 4.4% QoQ increase in net interest income (NII) to ₹9,923 crore. The net interest margin (Domestic) reached 3.24%, contributing to the highest net profit in 14 quarters at ₹1,756 crore, reflecting a 327% YoY improvement.

PNB Shares Soar with 53% Yearly Return: For any Error, VISIT

VoM News Desk

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