PNB Share Price Analysis: Trends, Performance, and Outlook (May 2025)
Introduction
Punjab National Bank (PNB), one of India's leading public sector banks, has recently garnered significant attention from investors and market analysts. As of May 8, 2025, PNB's share price closed at ₹94.25 on the Bombay Stock Exchange (BSE), reflecting a marginal decline of 0.58% from the previous day. This article delves into the recent performance of PNB's stock, evaluates its financial health, and explores future prospects.
Recent Share Price Performance
Over the past week, PNB's share price has exhibited volatility, influenced by market dynamics and the bank's financial disclosures.
Table: PNB Share Price Movement (May 2–8, 2025)
| Date | Open (₹) | High (₹) | Low (₹) | Close (₹) | Volume (Shares) |
|---|---|---|---|---|---|
| May 8 | 95.64 | 95.53 | 93.51 | 93.96 | 69.66M |
| May 7 | 94.20 | 96.89 | 92.81 | 94.25 | 89.57M |
| May 6 | 99.97 | 100.22 | 94.01 | 94.47 | 27.00M |
| May 5 | 99.40 | 100.57 | 99.20 | 99.40 | 11.86M |
| May 2 | 100.21 | 101.66 | 99.10 | 99.72 | 15.94M |
The stock experienced a notable dip on May 6, dropping by nearly 5% intraday, likely due to profit booking ahead of the Q4 FY25 results. However, it rebounded slightly in subsequent sessions.
FY25 Financial Highlights
PNB's financial performance for the fourth quarter of FY25 showcased significant improvements across various metrics:
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Net Profit: ₹4,567 crore, a 52% increase year-on-year.
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Net Interest Income (NII): ₹10,757 crore, up by 4% YoY.
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Operating Profit: ₹6,776 crore, marking a 5.6% YoY growth.
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Gross NPA Ratio: Reduced to 3.95% from 4.09% in the previous quarter.
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Provision Coverage Ratio: Improved to 96.82%, up by 143 basis points YoY.
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Dividend: Board recommended a dividend of ₹2.90 per share for FY25.
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Capital Raising: Approval to raise ₹8,000 crore through Basel III-compliant bonds in FY26.
Source:
These results indicate PNB's strengthened financial position and its commitment to enhancing shareholder value.
Analyst Perspectives
Market analysts have provided varied insights into PNB's stock trajectory:
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Equitymaster: Noted a 23% decline in PNB's share price over the past year, attributing it to broader market corrections.
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The Economic Times: Highlighted potential for the stock to rally up to ₹125, driven by steady credit growth and robust recoveries.
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Livemint: Reported that PNB's shares touched an intraday high of ₹96.79 on May 7, ahead of the Q4 results announcement.
Future Outlook
PNB's strategic initiatives and financial metrics suggest a cautiously optimistic outlook:
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Credit Growth: Projected at 11–12% for FY26.Deposit Growth: Expected between 9–10% in FY26.
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Operating Profit Growth: Anticipated at 8–9% for FY26.
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Credit Costs: Estimated to remain below 0.5% in FY26.
Key Takeaways
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Financial Strength: Significant YoY growth in net profit and improved asset quality metrics.
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Market Performance: Recent volatility in share price, with potential for upward movement based on analyst forecasts.
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Strategic Initiatives: Plans to raise capital and focus on credit growth indicate proactive management.
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Investor Consideration: While short-term fluctuations exist, long-term prospects appear favorable for investors seeking exposure to the banking sector.
