Is Punjab National Bank stock a buy right now?
Punjab National Bank (PNB), trading around ₹99.40 as of May 5, 2025, continues to attract considerable attention, with a robust 20-day average trading volume of approximately 24 million shares on the NSE. The recent announcement of a ₹1.50 per share final dividend and anticipation around the upcoming results scheduled for May 7, 2025, have added near-term excitement to the stock. PNB’s Q3 FY2025 numbers were particularly encouraging, with net profit nearly doubling year-on-year and asset quality metrics improving steadily—a testament to management’s renewed focus on financial discipline. While short-term technicals present a mixed picture, the longer-term context within India’s resilient and expanding public sector banking segment bolsters PNB’s investment thesis. Supported by 70% government holding, healthy margins, and an ongoing recovery in the economy, market sentiment around PNB is quietly optimistic. Analysts from more than 32 national and international banks currently expect the stock to reach a target price near ₹129 within a year, underlining confidence in the bank’s strategic direction. Given these foundations, investors may find value in monitoring PNB closely as it navigates its next phase of growth.
- Asset quality has improved, with net NPA dropping to 0.41% in Q3 FY2025.
- Impressive net profit growth, with a 171% YoY increase in FY2023-24.
- Attractive valuation, trading at a P/E well below the sector average.
- Strong government backing with over 70% promoter holding ensures stability.
- Consistent dividend payout alongside improved financial performance.
- Return on equity remains moderate despite profit improvements.
- Historical fraud incidents and contingent liabilities require ongoing vigilance.
- What is Punjab National Bank?
- How much is Punjab National Bank stock?
- Our full analysis on Punjab National Bank </b>stock
- How to buy Punjab National Bank stock in India?
- Our 7 tips for buying Punjab National Bank stock
- The latest news about Punjab National Bank
- FAQ
Why trust HelloSafe?
At HelloSafe, our specialist has been monitoring the performance of Punjab National Bank for over three years. Every month, hundreds of thousands of users in India rely on us to interpret market trends and highlight the best investment opportunities available. Our analyses are provided strictly for informational purposes and should not be considered as investment advice. As per our ethical charter, we have never been, and never will be, financially compensated by Punjab National Bank.
What is Punjab National Bank?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Flagship public sector bank with deep government support. |
| 💼 Market | National Stock Exchange of India (NSE) | Listed on NSE, offers high liquidity and retail access in India. |
| 🏛️ ISIN code | INE160A01022 | Unique stock identifier for transparency and regulatory purposes. |
| 👤 CEO | Atul Kumar Goel | Leadership under Goel has focused on asset quality and digital transformation. |
| 🏢 Market cap | ₹1,14,240 Crores | Ranks among India’s largest banks, indicating systemic importance. |
| 📈 Revenue | ₹1,22,394 Crores (FY24) | Revenue grew over 23% YoY, reflecting strong loan and deposit momentum. |
| 💹 EBITDA | Not separately reported* | Public sector banks typically report net profit; EBITDA less relevant for banks. |
| 📊 P/E Ratio (Price/Earnings) | 6.79 | Low P/E suggests undervaluation, but may signal market concerns on earnings quality. |
Important Information
Note: EBITDA is not a key metric for banks; net profit is a more applicable measure.
How much is Punjab National Bank stock?
The price of Punjab National Bank stock is falling this week. As of now, the stock trades at ₹99.40, showing a daily decline of 0.35% and a weekly drop of 2.71%.
PNB’s market capitalization stands robust at ₹1,14,239.86 crores, with an average three-month trading volume of about 24.08 million shares.
| Metric | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 6.79 |
| Dividend Yield | 1.51% |
| Beta (1 month) | 1.85 |
Investors should be aware that the elevated beta suggests considerable price volatility in the near term.
Check out the best brokers in India!Compare brokersOur full analysis on Punjab National Bank stock
We have undertaken a comprehensive review of Punjab National Bank’s (PNB) latest financial results alongside its multi-year share price performance, synthesizing insights from quantitative financial indicators, advanced technical analysis, real-time market data, and a cross-benchmarking of key competitors within our proprietary valuation models. This in-depth approach highlights why Punjab National Bank may be re-emerging as a compelling opportunity for investors seeking exposure within India’s dynamic banking sector. So, why might Punjab National Bank stock once again become a strategic entry point into the Indian banking space in 2025?
Recent Performance and Market Context
Over the past three years, Punjab National Bank’s stock has appreciated by a remarkable 190.22%, outpacing many public sector peers and reflecting a period of robust fundamental improvement. While the last twelve months have witnessed a corrective phase (the stock is down 26.80% YoY), it is worth underlining that current valuations present an intriguing dichotomy: PNB trades at ₹99.40 per share as of May 5, 2025—approximately 30% below last year’s 52-week high of ₹142.90, and marginally above major support levels.
Several recent drivers deserve special attention:
- Q3 FY2025 Results: Total income rose by 15.59% year-on-year, while net profit nearly doubled (+97.35% YoY), highlighting not just topline momentum but strong bottom-line efficiency.
- Dividend Continuity: The May 2024 dividend of ₹1.50 per share reaffirms management’s intent to drive stable shareholder returns, with a forward yield of 1.51%—a significant point of attraction for income-seeking investors.
- Earnings Momentum: Consecutive quarters of accelerating net profit and robust net interest margin (2.53%) are underpinned by tighter credit risk controls and improving non-performing asset (NPA) ratios.
- Sector Tailwinds: Macroeconomic tailwinds—strong GDP growth, resurgent credit demand, and a banking sector benefiting from regulatory reforms—create a positive backdrop, especially for fundamentally improving public sector banks with expansive reach like PNB.
This combination of cyclical opportunity and company-specific turnaround forms an auspicious setting for investors evaluating new positions in India’s financial landscape.
Technical Analysis
Technical signals currently suggest PNB is at a transitional juncture with an increasing probability of resumption in upward momentum. Current price action (₹99.40) positions the stock above its 20-day, 50-day, and 100-day simple moving averages—all bullish from a short- to medium-term perspective. Conversely, the price remains just below its 200-day SMA (₹103.76), suggesting the market is at the threshold of a potential new bullish leg if this overhead resistance is breached.
Key technical insights:
- Relative Strength Index (RSI-14) at 53.81: Indicates neutral momentum, but a reading above 50 reflects emerging bullishness without overbought conditions.
- MACD at -0.09: Slightly bearish but flattening, pointing to a reduction in selling pressure and potential bullish crossover.
- Support Levels: Well-defined at ₹98.77, ₹97.36, and ₹95.57; recent price action repeatedly holding these zones enhances technical conviction for downside risk containment.
- Resistance Levels: The nearest test zone is ₹101.97. A close above this could trigger heightened buying interest and reinforce the trend reversal towards ₹103.76 and possibly ₹105.17.
Structure-wise, PNB’s strong long-term trend remains intact (as evidenced by its three-year outperformance), and the current period of consolidation may represent an optimal set-up for medium- to long-term accumulation ahead of anticipated catalysts (notably, Q4/FY2025 results).
Fundamental Analysis
Punjab National Bank’s investment thesis is buttressed by a confluence of improving fundamentals and a highly attractive valuation that stands out within the sector:
- Impressive Revenue and Profit Growth: For FY24, PNB delivered a 23.5% YoY increase in total income and a 171.36% surge in net profit, sharply outpacing PSU bank rivals. Quarterly net profit margins are robust at 13.61%, demonstrating meaningful operational leverage.
- Asset Quality Improvement: Sustained reduction in gross NPAs (to 4.09%) and net NPAs (to 0.41%) reflects a much more resilient credit book and signifies that legacy asset quality issues are being methodically addressed.
- Valuation Metrics: With a P/E ratio of just 6.79 and a P/B of 0.99, PNB trades notably below the sector averages (P/E sector: 8.94), signaling a substantial margin of safety and a re-rating potential as profitability normalizes.
- Capital Adequacy: The bank’s capital adequacy ratio of 16.00% offers a sizeable capital buffer, enabling future balance sheet growth and ensuring compliance with tightening regulatory standards.
- Brand and Market Position: As India’s second-largest public sector bank with a significant presence in North and Central India and over 70% government ownership, PNB retains strategic advantages in consumer trust, deposit mobilization, and compliance backing.
These structural strengths collectively justify renewed interest in the stock, reinforcing a positive fundamental outlook even as some legacy challenges persist.
Volume and Liquidity
Robust liquidity is a salient feature of PNB:
- Trading Volumes: Current daily volume stands at 12.42 million shares, with a 20-day average at 24.08 million, placing PNB among the most liquid public sector counters on the NSE.
- Institutional Confidence: With FIIs and DIIs together comprising over 20% of shareholding, alongside high government promoter holding (70.08%), the stock’s free float is efficiently balanced, supporting price discovery and dynamic valuation shifts.
- Public Participation: Nearly 10% of the float is held by retail and public investors, further enhancing market vibrancy and reducing volatility-related risks.
Sustained high liquidity signals enduring investor confidence and facilitates both tactical trading and buy-and-hold strategies, making PNB an attractive candidate for a variety of portfolio needs.
Catalysts and Positive Outlook
Several potent forward drivers underpin the bullish case for PNB into 2025 and beyond:
- Earnings Catalysts: The upcoming earnings call and results release (May 7, 2025) offer a near-term trigger; strong Q4/FY25 results could upgrade consensus estimates and drive momentum.
- Product and Digital Initiatives: Continued roll-out of innovative digital banking solutions, fintech partnerships, and enhanced product offerings are expected to contribute to new customer acquisition and greater operational efficiency.
- ESG Initiatives: PNB has made strides on sustainability by aligning lending with green and priority sector initiatives—trends increasingly favored by institutional capital.
- Sectoral Reforms: Ongoing regulatory reforms, such as asset quality normalization and higher provisioning requirements, are gradually raising the return-on-equity profile for PSU banks.
- India’s Economic Cycle: The combination of sustained GDP growth, rising urban incomes, and rebounding credit uptake in both retail and corporate segments bodes exceptionally well for well-capitalized, broad-based lenders such as PNB.
Together, these triggers paint a scenario in which PNB’s medium- to long-term outlook appears not only stable but primed for further upside as normalization and transformation continue.
Investment Strategies
Investors may consider a range of approaches for PNB, each taking advantage of the current setup:
- Short-term (1–3 months):
- Strategic Accumulation: The stock is trading just above key support (₹98.77–₹97.36); entering at these technical lows, especially ahead of the May 7 results, could enable upside participation should Q4 earnings deliver positive surprises.
- Catalyst Play: Traders could position for a potential breakout above ₹101.97 resistance, with subsequent near-term targets of ₹103.76–₹105.17 on strong earnings.
- Medium-term (6–12 months):
- Re-rating Potential: The combination of improving profitability, further NPA reduction, and positive regulatory developments could drive valuation multiple expansion toward the sector P/E, offering double-digit upside even on modest mean reversion.
- Dividend Income: An attractive yield (1.51%) provides an ancillary income stream, particularly meaningful during consolidation phases.
- Long-term (12+ months):
- Turnaround Play: With NPA levels at multi-year lows and operating margins buoyed by digital transformation, PNB is positioned to compound value in the next economic cycle.
- Structural Growth: Exposure to a resurging India banking sector with a large-cap, government-backed anchor like PNB can serve as a prudent, core holding for portfolios seeking both beta and value.
Taking a measured approach—initially establishing a position near current technical supports, then scaling further as fundamental catalysts materialize—appears well-suited to current market dynamics.
Is it the Right Time to Buy Punjab National Bank?
In summary, Punjab National Bank presents a rare combination of strong improving fundamentals, robust liquidity, attractive valuation, and palpable forward momentum. The bank’s earnings growth trajectory, disciplined risk management, and digital innovation stand in marked contrast to its depressed share price—a scenario historically associated with outsized forward returns in the Indian public sector banking space.
The convergence of cyclical macro tailwinds, improving asset quality, and a stable, high-dividend payout offers investors a resilient foundation amid wider market uncertainty. Technicals suggest a nascent recovery phase, with the share price perched above short- and medium-term averages and pivotal catalysts on the immediate horizon. For investors seeking renewed opportunities in India’s banking sector, PNB seems to represent an excellent opportunity to participate in the next phase of sectoral growth.
As PNB steadily addresses historical challenges and leverages its position as a banking leader, the conditions are aligning for a period of sustained outperformance, inviting serious consideration from those with a bullish, conviction-based outlook.
How to buy Punjab National Bank stock in India?
Buying Punjab National Bank (PNB) shares online is straightforward and secure when you use a regulated broker in India. Retail investors can access PNB stock through two main channels: direct “spot” (cash) purchases for long-term ownership, or Contracts for Difference (CFDs) for leveraged trading. Spot buying offers stability and dividends, while CFDs allow short-term strategies with leverage but higher risk. Choosing the right method depends on your financial goals and risk appetite. To help you decide, we provide a detailed broker comparison further down this page so you can find the platform best suited to your needs.
Cash buying
A cash purchase means buying actual Punjab National Bank shares on the National Stock Exchange (NSE). You become a shareholder, eligible for dividends and voting rights. Most Indian brokers charge a fixed commission per order—typically between ₹20 and ₹30 per trade.
Example
If Punjab National Bank shares trade at ₹99.40 and you invest ₹83,000 (equivalent to approximately $1,000 as per current rates), you can buy around 834 shares after accounting for a brokerage fee of around ₹400 (approx. $5).
✔️ Gain Scenario: If the share price rises by 10% to ₹109.34, your 834 shares are now worth about ₹91,188.
Result: +₹8,188 gross gain (~$100), representing +10% return on your investment (excluding taxes and other minor charges).
Trading via CFD
CFDs (Contracts for Difference) let you speculate on Punjab National Bank’s share price without owning the stock. With CFDs, you can take leveraged positions—amplifying both potential gains and risks. Typical costs are the spread (difference between buy/sell price) and overnight financing if you hold the position beyond a trading day.
Example
Suppose you open a CFD position on PNB shares using ₹83,000 as margin and 5x leverage. You’re exposed to ₹4,15,000 (roughly $5,000) worth of stock movement.
✔️ Gain Scenario: If PNB rises by 8%, your position gains 8% × 5 = 40%. Your unrealized gain is ₹33,200 (approx. $400) on your initial ₹83,000 (excluding trading fees and overnight charges).
Final advice
Before investing, it’s important to compare brokerage fees, platform conditions, and available trading tools—costs can vary significantly between brokers and affect your returns. Carefully consider your investment goals: cash buying suits long-term wealth building, while CFDs cater to short-term, higher-risk strategies. Be sure to consult our broker comparator further down this page—your choice should reflect your financial objectives and risk profile. Investing in Punjab National Bank offers both growth and income opportunities for Indian investors.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Our 7 tips for buying Punjab National Bank stock
| 📊 Step | 📝 Specific tip for Punjab National Bank |
|---|---|
| Analyze the market | Review both PNB’s recent financial results and sector trends; strong YoY profit growth and improving NPAs suggest longer-term stability, but recent price weakness invites patient entry at support levels close to ₹98.77. |
| Choose the right trading platform | Select a SEBI-registered Indian broker with access to the NSE and research tools for banking stocks to conveniently buy and track Punjab National Bank shares. |
| Define your investment budget | Allocate a portion of your portfolio suitable for public sector banks, considering PNB's historical volatility (beta >1.8); start small and diversify to balance risk. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from PNB’s recovery in asset quality and government backing, but remain flexible if trading around key events like results announcements. |
| Monitor news and financial results | Keep a close eye on PNB’s earnings releases (notably May 7), dividend announcements, and regulatory or government policy changes, as these directly impact the stock. |
| Use risk management tools | Set stop-losses slightly below major support (e.g., ₹97) and consider staggered buying to manage risk, especially if volatility increases around quarterly results. |
| Sell at the right time | Review your investment thesis regularly and consider booking profits near resistance zones (₹101.97–₹105.17) or if fundamentals show signs of sustained deterioration. |
The latest news about Punjab National Bank
Punjab National Bank will announce its Q4 and FY25 financial results and dividend proposal on May 7, 2025. The scheduled board meeting and earnings call are widely anticipated as they will not only provide insights into the bank’s year-end performance but also feature a potential final dividend recommendation—making this a critical event for both institutional and retail investors, especially in the Indian market.
PNB reported a nearly 100% year-on-year growth in Q3 FY25 net profit, driven by a strong income surge and improved margins. The bank posted a net profit of ₹4,801 crores (+97.35% YoY) and a total income increase of 15.59% YoY in the December quarter, with its net NPA ratio declining to a healthy 0.41%. This highlights a notable enhancement in both profitability and asset quality, reinforcing confidence in PNB’s ongoing turnaround.
The bank’s long-term financial performance remains robust, delivering a 190% three-year stock return and doubling annual net profit in FY24. With a five-year CAGR of 24.2% in profit and a 171.36% jump in net profit for FY 2023-24, Punjab National Bank stands out for its successful recovery and capital efficiency. The return on equity for the latest twelve months (8.92%) and a steadily rising book value per share strengthen its position among India’s top public sector banks.
Technical analysis indicates the current price is above all short-term moving averages, suggesting underlying bullishness for Indian investors. While the share is trading below its 200-day average (generally a bearish short-term signal), it remains above critical short- and medium-term support levels (20-, 50-, and 100-day SMAs). This alignment, coupled with a neutral RSI (53.81), provides a cautiously optimistic technical outlook ahead of the upcoming quarterly results.
PNB has demonstrated continued improvement in asset quality, with gross and net NPAs at multi-year lows and strong government support. Gross NPA has dropped to 4.09% and net NPA to just 0.41% as of Q3 FY25—the lowest in several years—reflecting effective risk management and recovery efforts. The bank’s high promoter (government) holding (70.08%) and consistent dividend distribution underscore its security and reliability for Indian shareholders.
FAQ
What is the latest dividend for Punjab National Bank stock?
Punjab National Bank currently pays a dividend. The latest declared final dividend was ₹1.50 per share, announced on May 9, 2024. This corresponds to a yield of around 1.5%, which is attractive in comparison to other public sector banks in India. PNB has maintained a regular dividend payout policy, with a stable track record over recent years, making it a favorable option for income-focused investors.
What is the forecast for Punjab National Bank stock in 2025, 2026, and 2027?
Based on the current share price of ₹99.40, the projected values are ₹129.22 for the end of 2025, ₹149.10 for the end of 2026, and ₹198.80 for the end of 2027. The bank is backed by a robust government holding and has demonstrated strong improvements in profit and asset quality. Continued growth in India’s banking sector and PNB’s position as the country’s second-largest public sector bank support a positive longer-term outlook.
Should I sell my Punjab National Bank shares?
Given Punjab National Bank’s current valuation, stable dividend track record, and visible improvements in profitability and asset quality, holding onto your shares may be worth considering. The stock trades at a low P/E ratio compared to the sector, and government backing further enhances its stability. With a moderately bullish long-term technical outlook and an improving growth trajectory, PNB offers credible mid- to long-term potential. Review your investment goals and risk tolerance as part of your decision process.
How are dividends and capital gains from Punjab National Bank stock taxed in India?
In India, dividends received from Punjab National Bank are taxed as per your applicable income tax slab, with no additional dividend distribution tax for the company. For capital gains, profits from selling PNB shares held for more than one year are taxed as long-term capital gains (LTCG) at 10% if the total gains exceed ₹1 lakh in a financial year. Short-term gains (holding less than one year) are taxed at 15%. Always keep proper records for accurate tax calculation and reporting.
What is the latest dividend for Punjab National Bank stock?
Punjab National Bank currently pays a dividend. The latest declared final dividend was ₹1.50 per share, announced on May 9, 2024. This corresponds to a yield of around 1.5%, which is attractive in comparison to other public sector banks in India. PNB has maintained a regular dividend payout policy, with a stable track record over recent years, making it a favorable option for income-focused investors.
What is the forecast for Punjab National Bank stock in 2025, 2026, and 2027?
Based on the current share price of ₹99.40, the projected values are ₹129.22 for the end of 2025, ₹149.10 for the end of 2026, and ₹198.80 for the end of 2027. The bank is backed by a robust government holding and has demonstrated strong improvements in profit and asset quality. Continued growth in India’s banking sector and PNB’s position as the country’s second-largest public sector bank support a positive longer-term outlook.
Should I sell my Punjab National Bank shares?
Given Punjab National Bank’s current valuation, stable dividend track record, and visible improvements in profitability and asset quality, holding onto your shares may be worth considering. The stock trades at a low P/E ratio compared to the sector, and government backing further enhances its stability. With a moderately bullish long-term technical outlook and an improving growth trajectory, PNB offers credible mid- to long-term potential. Review your investment goals and risk tolerance as part of your decision process.
How are dividends and capital gains from Punjab National Bank stock taxed in India?
In India, dividends received from Punjab National Bank are taxed as per your applicable income tax slab, with no additional dividend distribution tax for the company. For capital gains, profits from selling PNB shares held for more than one year are taxed as long-term capital gains (LTCG) at 10% if the total gains exceed ₹1 lakh in a financial year. Short-term gains (holding less than one year) are taxed at 15%. Always keep proper records for accurate tax calculation and reporting.
