Punjab National Bank Share Price Rises 4% Following Fourth-Quarter Earnings Release
Punjab National Bank Shares Surge 4% After March Quarter Results
On Wednesday, 6 May, Punjab National Bank (PNB) shares saw a significant surge, climbing nearly 4% in morning deals on the BSE, following the PSU bank's report of its March quarter (Q4FY26) results. The bank's shares opened at ₹110.05, up from their previous close of ₹107.90, and reached an intraday high of ₹111.75, a 3.6% increase from the previous close.
PNB reported a 14.41% year-on-year (YoY) rise in standalone profit to ₹5,225.11 crore for Q4FY26, compared to ₹4,567 crore in the same quarter last year. The bank's operating profit rose by 10.7% YoY to ₹7,500 crore. However, PNB's net interest income (NII) and net interest margin (NIM) declined in Q4FY26. NII declined 3.5% YoY to ₹10,380 crore, while domestic NIM stood at 2.61% compared to 2.96% YoY, and global NIM stood at 2.47% compared to 2.81% YoY.
| Metric | Q4FY26 | Q4FY25 | YoY Change |
|---|---|---|---|
| Net Interest Income (NII) | ₹10,380 crore | ₹10,765 crore | -3.5% |
| Domestic Net Interest Margin (NIM) | 2.61% | 2.96% | -11.4% |
| Global Net Interest Margin (NIM) | 2.47% | 2.81% | -12.1% |
Despite a slip in NII and NIM, most brokerage firms have maintained their views on the stock after the March quarter earnings. According to Motilal Oswal Financial Services, PNB reported a mixed quarter, with earnings beat led by controlled provisions and operational expenditure. The brokerage firm highlighted that PNB's business growth remained modest, and management guided for a loan growth of nearly 12-13% in FY27. Elara Securities has retained its 'accumulate' rating on the stock, reducing the target price to ₹125 from ₹135, implying a 16% upside potential.
| Brokerage Firm | Target Price | Upside Potential |
|---|---|---|
| Motilal Oswal Financial Services | ₹135 | 25% |
| Elara Securities | ₹125 | 16% |
PNB's management guided for a return on assets (RoA) of more than 1% for FY27, while credit cost is guided at less than 0.4%. Motilal Oswal estimates FY27 RoA and RoE at nearly 1% and 14.8%, respectively.
Investor Takeaway
Investors may consider buying PNB shares after the Q4 results, considering the 14.41% year-on-year rise in standalone profit.
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