Want to see IN:PNB full AI Analyst Report?
Top Page
Punjab National Bank
(PNB)
Select Model
Select Model
Rating:72Outperform
Price Target:
₹128.00
▲(10.15% Upside)
Action:Reiterated
Date:10/17/26
The score is driven primarily by improving fundamentals (strong profitability turnaround, healthier latest leverage) and an attractive valuation (low P/E with a solid dividend yield). The earnings call adds support due to upbeat guidance and clear asset-quality improvement, partially offset by noted provisioning/treasury and recovery-target risks. Technical signals are neutral, limiting near-term momentum contribution.
Positive Factors
Broad-Based Credit Growth
Growth is broad across retail, MSME and agriculture rather than concentrated in one lending line. That scale can support recurring interest and fee income, improve operating leverage, and strengthen PNB’s competitive position as advances and customer relationships compound.
Negative Factors
Inconsistent Cash Conversion
Although recent free cash flow was close to net income, the history shows meaningful swings in operating and free cash generation. Such inconsistency can complicate capital planning, weaken confidence in earnings conversion, and limit flexibility during periods of balance-sheet stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-Based Credit Growth
Growth is broad across retail, MSME and agriculture rather than concentrated in one lending line. That scale can support recurring interest and fee income, improve operating leverage, and strengthen PNB’s competitive position as advances and customer relationships compound.
Read all positive factors
Punjab National Bank (PNB) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.41T
Dividend Yield2.45%
Average Volume (3M)649.58K
Price to Earnings (P/E)6.2
Beta (1Y)1.26
Revenue Growth2.89%
EPS Growth34.19%
CountryIN
Employees103,184
SectorGeneral
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)19.85
Shares Outstanding11,492,943,000
10 Day Avg. Volume831,684
30 Day Avg. Volume649,577
Financial Highlights & Ratios
PEG Ratio-2.46
Price to Book (P/B)0.77
Price to Sales (P/S)0.77
P/FCF Ratio4.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹137.00Price Target Upside17.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)17.99
Revenue Forecast (FY)₹638.33B
Punjab National Bank Business Overview & Revenue Model
Company Description
Punjab National Bank is an Indian financial institution offering a diverse range of banking and financial services. Its operations are structured across several key segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and other ancilla...
How the Company Makes Money
PNB generates income primarily through a mix of interest-based revenue and fee/commission-based revenue typical of commercial banks.
1) Net interest income (core earnings)
- Interest on loans and advances: PNB earns interest from lending to retai...
Punjab National Bank Earnings Call Summary
Earnings Call Date:Oct 16, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 29, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Highlights significantly outweighed the lowlights, with double-digit business and earnings growth, improving NIMs, lower funding costs, strengthening asset quality, strong capital ratios, digital progress and multiple growth initiatives. The main cautions were agriculture-related monitoring, a corporate road-sector slippage, challenging and declining recovery expectations, the remaining ECL transition requirement, and treasury pressure from higher government security yields.Positive Updates
Strong Indian Economic Backdrop
Management cited real GDP growth of 7.8% in Q1 FY2027 versus 6.9% in the corresponding quarter of the previous year. FY2027 GDP estimates were revised to 7.1% from previous estimates of 6.7% and 6.6%, while merchandise exports grew 17.85% year over year during April-August 2026 to an estimated USD 215.91 billion.
Negative Updates
Agriculture Portfolio Requires Close Monitoring
Management acknowledged increased slippages in the agriculture segment, including in Maharashtra and Andhra, and said the bank needed to be very careful and watchful. Drought-related challenges could emerge over the next two to three months, although management stated that no restructuring framework had started on a larger scale and that conditions remained under control.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Indian Economic Backdrop
Management cited real GDP growth of 7.8% in Q1 FY2027 versus 6.9% in the corresponding quarter of the previous year. FY2027 GDP estimates were revised to 7.1% from previous estimates of 6.7% and 6.6%, while merchandise exports grew 17.85% year over year during April-August 2026 to an estimated USD 215.91 billion.
Read all positive updates
Company Guidance
Management said it remains on track for FY 2026-2027 guidance, including NII growth of 7%, PCR of more than 96%, and a slippages ratio below 0.9%; it expects margins of 2.6%-2.7%, a further 7 basis points-9 basis points addition in the particular quarter and a minimum 7 basis point improvement in NIM, while keeping deposit growth between 8%-9% and supporting credit growth around 77%-78%. It expects recovery in the range of around INR 3,500 crore in the quarter, Somewhere around INR 12,000 crore-INR 13,000 crore definitely will be there, and a next-year target of around 12,000 crore of total recovery; ECL is expected to come to around INR 8,000 crore, with only around INR 5,000 crore required for transition, credit cost between 0.25%-0.30%, ROA of more than 1.04% to 1.05%, and the ROA around 15%-17%. The bank also expects INR 100 crore-INR 150 crore of additional provisions, gold-loan pricing of 8.75%-8.9%, around INR 200 crore of credit-card fee income next financial year, RAM at 58%-59% by year-end, and around INR 700-800 crore of treasury-related income in the quarter.Punjab National Bank Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.53T | 1.51T | 1.40T | 1.24T | 989.09B | 879.77B |
| Gross Profit | 600.85B | 589.11B | 597.61B | 552.61B | 470.92B | 411.54B |
| EBITDA | 281.77B | 283.63B | 269.73B | 150.66B | 60.56B | 57.22B |
| Net Income | 228.61B | 183.93B | 184.80B | 91.07B | 33.48B | 38.61B |
Balance Sheet | ||||||
| Total Assets | 21.29T | 20.33T | 18.58T | 15.99T | 14.94T | 13.39T |
| Cash, Cash Equivalents and Short-Term Investments | 1.53T | 1.64T | 1.51T | 1.31T | 1.57T | 1.34T |
| Total Debt | 1.38T | 1.08T | 2.05T | 725.86B | 701.49B | 593.72B |
| Total Liabilities | 19.67T | 18.83T | 17.24T | 14.88T | 13.90T | 12.41T |
| Stockholders Equity | 1.61T | 1.50T | 1.33T | 1.10T | 1.03T | 975.82B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 236.22B | 204.74B | -291.14B | 220.40B | 193.96B |
| Operating Cash Flow | 0.00 | 252.47B | 220.75B | -279.39B | 225.92B | 199.32B |
| Investing Cash Flow | 0.00 | -1.51T | -15.78B | -15.06B | -7.32B | -12.04B |
| Financing Cash Flow | 0.00 | 1.39T | -11.38B | 35.18B | 1.37T | 425.49B |
Punjab National Bank Technical Analysis
Positive
116.20
Price Trends
116.58
Positive
112.89
Positive
112.42
Positive
Market Momentum
1.83
Negative
64.77
Neutral
68.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PNB, the sentiment is Positive. The current price of 116.2 is below the 20-day moving average (MA) of 117.42, below the 50-day MA of 116.58, and above the 200-day MA of 112.42, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 68.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PNB.
Punjab National Bank Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹8.87T | 10.30 | ― | 1.80% | 6.56% | 4.93% | |
72 Outperform | ₹1.41T | 6.19 | ― | 2.45% | 2.89% | 34.19% | |
71 Outperform | ₹1.23T | 6.79 | ― | 3.56% | 2.73% | -6.67% | |
71 Outperform | ₹10.68T | 13.32 | ― | 2.24% | 4.59% | 10.08% | |
68 Neutral | ₹1.07T | 5.23 | ― | 3.55% | -6.75% | 6.41% | |
65 Neutral | ₹1.41T | 6.45 | ― | 2.70% | 0.31% | 19.01% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:PNB
Punjab National Bank
122.50
3.07
2.57%
IN:BANKBARODA
Bank of Baroda
238.50
-31.08
-11.53%
IN:CANBK
Canara Bank
118.35
-14.23
-10.73%
IN:HDFCBANK
HDFC Bank Limited
692.30
-279.27
-28.74%
IN:SBIN
State Bank of India
961.00
40.60
4.41%
IN:UNIONBANK
Union Bank of India Limited
185.20
40.91
28.35%
Punjab National Bank Corporate Events
Punjab National Bank Posts Earnings Call Recording for September 2026 Results
Oct 16, 2026
Punjab National Bank has made available the audio and video recordings of its earnings call with analysts and investors held on October 16, 2026. The call discussed the bank’s unaudited reviewed financial results for the quarter and half-yea...
Punjab National Bank Fined by RBI for Currency Chest Guideline Breaches
Oct 14, 2026
Punjab National Bank has disclosed that the Reserve Bank of India has imposed multiple monetary penalties on the bank for non-compliance with operational guidelines governing currency chests under the RBI’s master directions. The penalties, ...
Punjab National Bank Schedules Earnings Call on Q2 FY27 Results
Oct 13, 2026
Punjab National Bank has scheduled an earnings conference call with analysts and investors to discuss its unaudited financial results for the quarter and half-year ended 30 September 2026. The call, organized with Motilal Oswal Financial Services,...
Punjab National Bank Shuts Trading Window Ahead of Quarterly Results
Oct 3, 2026
Punjab National Bank has announced the closure of its trading window for designated persons, their immediate relatives, and other insiders from 1 October 2026. The window will remain shut until 48 hours after the bank releases its financial result...
Punjab National Bank Confirms SEBI-Compliant Dematerialisation of Shares
Oct 3, 2026
Punjab National Bank has notified the stock exchanges that it has received a confirmation certificate from its Registrar and Share Transfer Agent for the quarter ended 30 September 2026, complying with Regulation 74(5) of the SEBI (Depositories an...
Punjab National Bank Posts Double-Digit Growth in Global Business and Advances
Oct 2, 2026
Punjab National Bank reported provisional business figures for the half year ended 30 September 2026, showing steady expansion across key metrics. Global business rose to Rs 31,19,790 crore, an 11.95% year-on-year increase, while domestic business...
Punjab National Bank Elects Vandana Bhagavatula as Shareholder Director, Cancels EGM
Sep 17, 2026
Punjab National Bank has announced that its board has deemed the nomination of chartered accountant Vandana Bhagavatula as the only valid and “fit and proper” candidature for the role of shareholder director, resulting in her automatic...
Punjab National Bank Launches USD 1.5 Billion Euro Medium Term Note Programme
Sep 16, 2026
Punjab National Bank has established a Euro Medium Term Note programme of USD 1.50 billion, expanding its ability to raise funds from international debt markets. The programme’s offering circular has been submitted to India International Exc...
Punjab National Bank Fined by RBI for Currency Chest Non-Compliance
Aug 21, 2026
Punjab National Bank has disclosed that the Reserve Bank of India has imposed a monetary penalty of Rs 4,33,900 on the bank. The action stems from non-compliance with operational guidelines governing currency chests, as specified under RBI’s...
Punjab National Bank Opens Special Window for Dematerialization of Physical Securities
Aug 19, 2026
Punjab National Bank has notified stock exchanges that it has published a shareholder notice in leading Hindi and English business newspapers regarding a special window for the transfer and dematerialization of physical securities. The disclosure,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.