PNB Shares Hit 52-Week High and Report Q2 Business Update

PNB Shares Hit 52-Week High and Report Q2 Business Update

VoM News Desk | October 5, 2023 | 12:30 PM IST | Breaking News | Follow on Google News

PNB Shares Hit 52-Week High and Report Q2 Business Update

PNB Shares Hit 52-Week High and Report Q2 Business Update

PNB share price reached a 52-week high of ₹83.50 on October 3rd on the NSE, marking an impressive performance for the stock. In contrast, the stock had touched its 52-week low of ₹35.45 on October 13th the previous year.

Price Decline After Q2 Business Update

On October 5th, PNB share price experienced a decline of over 3% during morning trade on the NSE. This came after the company reported its business update for the September quarter. The stock opened at ₹80.70, slightly higher than the previous close of ₹79.75. It witnessed an intraday high of ₹81.05 and a low of ₹76.25 on the NSE.

By around 10:45 am, PNB share price had fallen by 3.51% and was trading at ₹76.95 on the NSE.

Impressive One-Year Performance

Over the past year, PNB shares have displayed robust growth, outperforming key indices in the market. PNB’s share price surged by more than 113% in the last year, whereas the Nifty PSU Bank index gained approximately 74%. In comparison, both Nifty Bank and Nifty 50 experienced gains of about 13% during the same period.

Q2 Business Update Highlights

Punjab National Bank reported its Q2FY24 business update, stating that its domestic advances grew by 13.9% year-on-year (YoY) to ₹9,07,937 crore. Global gross advances also rose by 13.8% YoY, and total business increased by 11.3% YoY. Domestic deposits reached ₹12,75,995 crore, marking a 9.3% YoY growth, while CASA deposits grew by 2.6% YoY. The bank noted that the credit-deposit ratio increased by 262 basis points YoY to 72.18%.

Analyst Opinions

Brokerage firm Motilal Oswal Financial Services has a buy recommendation for PNB shares, citing the bank’s consistent business growth and quarter-on-quarter improvement in the CASA ratio.

However, global brokerage firm Morgan Stanley has maintained an underweight view on the stock with a target price of ₹55. The firm highlighted potential stress from the restructured book and the MSME segment as key risks for PNB.

Technical analysts suggest that investors can consider buying the stock on declines but should exercise caution if it falls below critical support levels. They point out that despite a recent pullback from ₹83 to ₹80, there may be a retracement towards ₹77.50-78, where support is expected.

Overall, PNB shares have witnessed a substantial rally since the beginning of 2023, and analysts have varying opinions on its future potential, with some recommending buying on dips and others advising caution.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.