Is Punjab National Bank stock a good buy in India for 2025?
Is it the right time to buy Punjab National Bank?
ScoreAs of July 2025, Punjab National Bank (PNB) trades at approximately ₹110.23 per share on robust daily volumes averaging around 26.8 million, underscoring sustained market activity in India’s ever-active public sector banking landscape. The stock has demonstrated resilience, posting an 11% six-month gain despite a full-year retracement, supported by PNB’s remarkable return to profit growth—FY25 net income doubled and asset quality is steadily improving. Recent volatility, such as the brief 3.18% dip in early July, is being viewed as healthy profit-taking after a period of strength; overall sentiment reflects cautious optimism, especially as PNB maintains a sector-beating dividend yield of 2.63% and a conservatively valued P/E of 6.86. The bank’s leadership position is reinforced by ongoing capital raising initiatives and a solid capital adequacy ratio of 17.01%, leaving PNB well-equipped to support lending growth in India’s accelerating economic environment. The average price target among 14 leading national and international banks stands at ₹143, bolstered by a consensus that recognises Punjab National Bank’s structural improvements and upside potential. For investors looking to gain exposure to India’s public banking sector, present valuations offer an entry point worth consideration.
- ✅Net profit doubled in FY25, reflecting strong turnaround momentum.
- ✅Attractive 2.63% dividend yield enhances total shareholder return.
- ✅Improved asset quality with lower bad loan provisions.
- ✅Well-capitalised: capital adequacy at 17.01%, supporting future growth.
- ✅Among the top three public sector banks in India.
- ❌Recent volatility may continue as the market digests rapid gains.
- ❌Analyst sentiment on future growth remains somewhat cautious.
Score- ✅Net profit doubled in FY25, reflecting strong turnaround momentum.
- ✅Attractive 2.63% dividend yield enhances total shareholder return.
- ✅Improved asset quality with lower bad loan provisions.
- ✅Well-capitalised: capital adequacy at 17.01%, supporting future growth.
- ✅Among the top three public sector banks in India.
Is it the right time to buy Punjab National Bank?
- ✅Net profit doubled in FY25, reflecting strong turnaround momentum.
- ✅Attractive 2.63% dividend yield enhances total shareholder return.
- ✅Improved asset quality with lower bad loan provisions.
- ✅Well-capitalised: capital adequacy at 17.01%, supporting future growth.
- ✅Among the top three public sector banks in India.
- ❌Recent volatility may continue as the market digests rapid gains.
- ❌Analyst sentiment on future growth remains somewhat cautious.
Score- ✅Net profit doubled in FY25, reflecting strong turnaround momentum.
- ✅Attractive 2.63% dividend yield enhances total shareholder return.
- ✅Improved asset quality with lower bad loan provisions.
- ✅Well-capitalised: capital adequacy at 17.01%, supporting future growth.
- ✅Among the top three public sector banks in India.
- Punjab National Bank
- Punjab National Bank Stock Price
- Our full analysis on the Punjab National Bank stock
- How to buy Punjab National Bank stock
- Our 7 tips for buying Punjab National Bank stock
- The latest news about Punjab National Bank
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Punjab National Bank for over three years. Every month, lakhs of users in India trust us to analyze market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Punjab National Bank.
Punjab National Bank
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Indian | Major public sector bank with a strong nationwide presence across India. |
| 💼 Market | NSE & BSE | Shares are actively traded on both principal Indian stock exchanges. |
| 🏛️ ISIN code | INE160A01022 | Unique identifier ensures transparency and ease of transaction for investors. |
| 👤 CEO | Atul Kumar Goel | Leadership driving double-digit profit growth and improved capital adequacy. |
| 🏢 Market cap | ₹1,26,687 crores | Indicates Punjab National Bank’s large-scale impact and investor interest. |
| 📈 Revenue | ₹1,24,010 crores (FY25 annual) | Solid revenue growth highlights the success of its lending and deposits franchise. |
| 💹 EBITDA | Not disclosed (Net profit: ₹16,630 crores FY25) | Robust net profit growth, but detailed operating margin data is not available. |
| 📊 P/E Ratio (Price/Earnings) | 6.86 | Low valuation signals moderate expectations and a possible opportunity for investors. |
Punjab National Bank Stock Price
The price of Punjab National Bank stock is down this session but has risen over the past week. The latest price stands at ₹110.23, with a 24-hour loss of ₹3.62 and a weekly gain of 3.75%. Market capitalization is ₹1,26,687 crores, and the three-month average trading volume is 26.84 million shares. The P/E Ratio is 6.86, dividend yield is 2.63%, and the stock beta stands at 1.13. With strong fundamentals and elevated trading activity, Punjab National Bank offers notable investment potential for the Indian market.
Our full analysis on the Punjab National Bank stock
We have closely examined Punjab National Bank’s most recent financial disclosures and tracked its evolving stock performance over the last three years. Employing proprietary analytics that connect financial ratios, price action signals, sector benchmarks, and competitor trends, we provide a composite view of where this large-cap public sector bank stands today. So, why might Punjab National Bank stock once again become a strategic entry point into the Indian banking sector in 2025?
Recent performance and market context
In 2025, Punjab National Bank (PNB) has demonstrated resilience and renewed vigor in a competitive and dynamic environment. The stock trades at ₹110.23 as of July 4th, reflecting a weekly gain of 3.75% despite a slight intraday pullback (-3.18%). Over the past six months, PNB shares have climbed by an impressive 11.34%, though there was a 9.38% retreat over the last year primarily due to sector-wide volatility in Indian financials. Yet, fundamentals have turned a corner: annual net profit doubled to ₹16,630 crores in FY25, supported by robust cost management, prudent lending practices, and favorable credit growth. Key recent events—such as the announced capital raise of ₹8,000 crores, a major dividend payout, and further enhancement of the capital adequacy ratio to 17.01%—are clear signals that PNB is positioning itself proactively for further expansion. The broader macroeconomic context remains highly supportive, with India’s sustained GDP growth, increased digitization of financial services, and a government-led focus on boosting formal credit circulation.
Technical analysis
The technical structure underpinning Punjab National Bank is compelling for bullish investors. The stock trades above long-term moving averages (5-day: ₹110.80, 20-day: ₹107.93, 50-day: ₹103.58, 100-day: ₹98.89, 200-day: ₹101.04), confirming an emerging medium-term uptrend. The Relative Strength Index (RSI) is neutral, indicating there is significant headroom for further advances before the stock enters overbought territory. MACD readings support ongoing positive price momentum. Key technical support at ₹108.74 and pivot support at ₹107.25 have provided robust bases for buyers and limited downside risk in recent sessions. Resistance levels at ₹112.89 and ₹115.55 represent short-term technical targets, aligning with an increasingly constructive sentiment as each rally establishes higher lows. Overall, the technical configuration is suggestive of strong underlying buying interest, with a neutral-to-mildly bullish bias that could accelerate as additional catalysts unlock value.
Fundamental analysis
Fundamental improvement has become the standout feature for Punjab National Bank. FY25 saw annual revenue top ₹1,24,010 crores, marking a sturdy 13.7% year-on-year advance—a testament to prudent balance sheet expansion and measured growth in loan books. Net earnings surged by an extraordinary 101.7%, while return on equity (ROE) hit 15.2%, positioning PNB among the leaders in Indian public sector banking for value creation. Notably, cost-to-income ratios and credit costs have improved thanks to a sharp reduction in non-performing asset (NPA) provisions, reflecting effective risk controls and portfolio optimization. PNB’s P/E ratio stands at a highly attractive 6.86, significantly below sector averages—offering investors an entry at a valuation discount that is rarely seen for a major player experiencing clear fundamental recovery. The price/book ratio at 1.33 also signals that the stock is undervalued relative to intrinsic worth, giving further fundamental support for an upward rerating. As a leading PSU bank, Punjab National Bank leverages a brand trusted by millions of Indian households and holds a top-three market position with a pan-India reach, digital transformation agenda, and a best-in-class transaction banking platform.
Volume and liquidity
Sustained trading volumes create robust market depth and signal strong investor engagement in Punjab National Bank stock. With a 3-month average daily volume of 26.84 million shares, PNB provides high liquidity for both institutional and retail participants, supporting efficient execution for trades of all sizes. This dynamic ensures rapid price discovery—particularly meaningful in a segment where capital flows can react swiftly to policy or macro announcements. The broad float, supported by nearly 30% non-promoter holding, makes PNB’s valuation responsive to new information and market developments—facilitating swift upward adjustments as positive news hits the tape.
Catalysts and positive outlook
- The announced capital raise of ₹8,000 crores will further strengthen the balance sheet, enabling renewed lending growth and digital banking investments.
- Double-digit annual profit growth, combined with a dividend yield of 2.63%, underscores improved profitability and shareholder alignment.
- Ongoing reduction in NPA provisions and asset quality improvement target a further uplift in investor confidence and potential valuation expansion.
- Accelerated adoption of technology and expansion of digital channels have put PNB at the forefront of India’s financial transformation, opening access to millennial and underbanked customer segments.
- The evolving regulatory context, with continued government and RBI support for PSU banks, enables an environment where PNB can scale risk-controlled growth.
- Strategic initiatives—such as participation in economic stimulus lending, increased transaction banking capabilities, and pan-India digital partnerships—create new revenue streams and further competitive differentiation.
The uptrend in India’s banking and public sector financial ecosystem, combined with the scale and agility demonstrated by PNB’s executive team, offers a rare alignment of positive sector, company, and macroeconomic factors—fuel for further upward price movement.
Investment strategies
- Short-term: Technical strength near support levels, combined with rising volumes and positive near-term earnings momentum, suggest the potential for tactical gains as the stock targets near-term resistance at ₹112.89 and ₹115.55.
- Medium-term: Investors looking ahead to the next earnings cycle, capital deployment, and ongoing improvements in NPA ratios may benefit from accumulating positions in anticipation of a further rerating—especially as the broader Indian financials sector remains in favor.
- Long-term: For investors seeking durable wealth creation, Punjab National Bank’s sector leadership, digitalization strategy, improved fundamentals, and attractive valuation multiples form the basis for potential multi-year compounding. Catalysts such as continued NPA clean-up, digital banking innovation, and a stable dividend stream (notably ₹2.90 per share in FY25) enhance the case for a long-term portfolio anchor.
Positioning at or near current technical support levels, and before full realization of new capital deployment and digital expansion results, strengthens the argument for entry.
Is it the right time to buy Punjab National Bank?
Punjab National Bank’s recent operational turnaround, surging profitability, shareholder-friendly capital management, and discounted valuation all reinforce the case for renewed investor interest. Its proven leadership, digital-first pivot, and robust trading liquidity combine to create an environment where further price appreciation seems increasingly probable. Consensus analyst targets point toward a compelling valuation re-rating if current momentum is sustained, with bullish catalysts continuing to accumulate both inside and outside the organization. While short-term fluctuations remain possible, the confluence of low P/E, rising earnings, sector tailwinds, and transformative digital and capital initiatives makes Punjab National Bank appear poised for a new bullish phase. For investors searching for value and growth within India’s financial sector, the current market juncture seems to represent an excellent opportunity to consider Punjab National Bank as a portfolio cornerstone for 2025 and beyond.
How to buy Punjab National Bank stock
Buying Punjab National Bank stock online is straightforward and secure with a regulated broker in India. You have two main choices: purchase actual shares (spot buying) or use Contracts for Difference (CFDs) to trade on price movements. Spot buying means you become a shareholder; CFDs allow for flexible strategies and leverage. To help you choose the best platform and fees, you’ll find a broker comparison further down the page.
Spot buying
A cash purchase of Punjab National Bank stock means you directly own the shares in your account, giving you voting and dividend rights. Indian brokers usually charge a fixed commission per order, typically around ₹100–₹200, or a small percentage of the trade value.
Gain scenario
If the Punjab National Bank share price is ₹110.23 and you invest $1,000 (about ₹83,000), you can buy around 753 shares, including a brokerage fee of about $5 (₹415).
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Spot buying is ideal for investors who want long-term exposure and the benefits of direct ownership.
Trading via CFD
CFD trading on Punjab National Bank shares lets you speculate on price changes without owning the actual shares. CFDs allow for leverage, amplifying both potential gains and risks. Fees include the spread (the difference between buy and sell prices) and overnight financing if the position is held longer.
CFD Trading Gain Scenario: Punjab National Bank
You open a CFD position on Punjab National Bank shares, with 5x leverage and a $1,000 stake.
This gives you market exposure of $5,000.
Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
CFDs are suitable for active traders who want to take advantage of both rising and falling prices.
Final advice
Before investing, it is essential to compare broker fees, trading conditions, and service quality. The best method for buying Punjab National Bank depends on your financial objectives, risk approach, and whether you prefer direct ownership or active trading. For a detailed broker comparison to help with your decision, see the tool further down the page.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Punjab National Bank stock
| 📊 Step | 📝 Specific tip for Punjab National Bank |
|---|---|
| Analyze the market | Evaluate public sector banking trends and review how government policies support Punjab National Bank’s growth. |
| Choose the right trading platform | Use an NSE/BSE-certified broker with low fees and robust research tools for buying Punjab National Bank. |
| Define your investment budget | Decide how much to invest after assessing Punjab National Bank’s volatility and your risk appetite. |
| Choose a strategy (short or long term) | Consider both short-term swings or long-term holding, leveraging growth and dividend strength of Punjab National Bank. |
| Monitor news and financial results | Regularly check quarterly earnings and regulatory updates, as these often influence Punjab National Bank’s stock momentum. |
| Use risk management tools | Set stop-loss orders and monitor price levels to protect your Punjab National Bank investment from market swings. |
| Sell at the right time | Take profits near resistance or before major policy changes to maximize returns on Punjab National Bank. |
The latest news about Punjab National Bank
Punjab National Bank reported a weekly stock gain of 3.75% supported by strong trading volumes in India. Despite an intraday pullback on July 3, 2025, the share price reflected growing domestic investor confidence, with an average daily trading volume of nearly 27 million shares reinforcing market depth and liquidity.
Punjab National Bank announced a robust final dividend of ₹2.90 per share for FY25, reflecting financial strength. With the record dividend date set for 20 June 2025 and payment slated for 27 July 2025, the bank signals improved earnings distribution and shareholder value, underlining its profitability and positive capital management.
The bank’s Q4 FY25 net profit surged 52% year-on-year, substantially exceeding analyst expectations. The reported net profit for the quarter reached ₹4,567 crores, with an annual figure of ₹16,630 crores—doubling from the prior year—driven by improved asset quality and focused cost control across its expansive domestic operations.
Punjab National Bank continues solid capital management, maintaining a 17.01% capital adequacy ratio after raising new capital. Recent plans to raise ₹8,000 crores further strengthen the bank’s ability to support credit expansion and regulatory compliance, ensuring resilience amid evolving economic and policy conditions in India.
The recent Annual General Meeting reaffirmed Punjab National Bank’s role as a leading Indian public sector bank. Held on 30 June 2025, the AGM emphasized continued focus on technology adoption, risk management, and regional expansion initiatives across India, reinforcing Punjab National Bank’s competitive position and operational outlook.
FAQ
What is the latest dividend for Punjab National Bank stock?
Punjab National Bank currently pays a dividend. The latest declared dividend is ₹2.90 per share for FY25, with the ex-dividend date set for 20 June 2025 and payment scheduled for 27 July 2025. This marks a significant increase from the previous year, reflecting the bank’s solid earnings and commitment to rewarding shareholders through a consistent and growing distribution policy.
What is the forecast for Punjab National Bank stock in 2025, 2026, and 2027?
Based on current trends, projected values for Punjab National Bank are ₹143 for end-2025, ₹166 for end-2026, and ₹220 for end-2027. These forecasts reflect improved profitability, expanding lending volumes, and a strong recovery in asset quality. The bank remains a key player in India’s public sector banking landscape and benefits from continued market-wide demand for financial services.
Should I sell my Punjab National Bank shares?
Holding Punjab National Bank shares may be appropriate considering its attractive valuation, recent profit growth, and proven resilience in the public sector sphere. The company’s mid- and long-term growth prospects remain positive, buoyed by strategic capitalisation and improved fundamentals. Continued emphasis on cost control and asset quality further strengthens the outlook for ongoing value creation.
Are dividends or capital gains from Punjab National Bank stock taxable in India?
Yes, dividends from Punjab National Bank are taxed according to your income tax slab, while capital gains are subject to Securities Transaction Tax and capital gains tax. Long-term capital gains above ₹1 lakh are taxed at 10%, while gains from shares held less than one year are taxed at 15%. These rules apply to most listed shares for resident Indian investors.
What is the latest dividend for Punjab National Bank stock?
Punjab National Bank currently pays a dividend. The latest declared dividend is ₹2.90 per share for FY25, with the ex-dividend date set for 20 June 2025 and payment scheduled for 27 July 2025. This marks a significant increase from the previous year, reflecting the bank’s solid earnings and commitment to rewarding shareholders through a consistent and growing distribution policy.
What is the forecast for Punjab National Bank stock in 2025, 2026, and 2027?
Based on current trends, projected values for Punjab National Bank are ₹143 for end-2025, ₹166 for end-2026, and ₹220 for end-2027. These forecasts reflect improved profitability, expanding lending volumes, and a strong recovery in asset quality. The bank remains a key player in India’s public sector banking landscape and benefits from continued market-wide demand for financial services.
Should I sell my Punjab National Bank shares?
Holding Punjab National Bank shares may be appropriate considering its attractive valuation, recent profit growth, and proven resilience in the public sector sphere. The company’s mid- and long-term growth prospects remain positive, buoyed by strategic capitalisation and improved fundamentals. Continued emphasis on cost control and asset quality further strengthens the outlook for ongoing value creation.
Are dividends or capital gains from Punjab National Bank stock taxable in India?
Yes, dividends from Punjab National Bank are taxed according to your income tax slab, while capital gains are subject to Securities Transaction Tax and capital gains tax. Long-term capital gains above ₹1 lakh are taxed at 10%, while gains from shares held less than one year are taxed at 15%. These rules apply to most listed shares for resident Indian investors.
On the same topic
