PNBCL posted a 20% year‑on‑year jump in profit after tax, eclipsing the ₹3,800 crore consensus estimate and lifting the bank’s net interest margin by 8 basis points to 3.72%.
Loan book grew 16% YoY, a sharp acceleration from the double‑digit pace of prior quarters, while deposits held steady at a 10% rise, supporting a healthy liquidity profile.
Asset quality stayed tight, with the gross slippage ratio holding at 0.8% and net provisioning covering non‑performing assets, keeping credit costs near zero.
Analysts are split: CLSA rates PNBCL as “outperform” with a ₹140 target, implying a 20.4% upside, whereas Citi’s “sell” stance cuts the target to ₹110, a 5.4% decline from the current close.
On Monday, the stock hit an intraday high of ₹125.22, climbing 7.8% from the previous close and 5% over the past month, making it one of the top gainers on the PSU Bank index.
Looking ahead, management signals a potential NIM improvement and the bank’s overseas exposure via FCNR funding is expected to lift global advances further ahead of the FY27 guidance range. Investors will watch the next earnings release for confirmation of these trends.