Buy or sell PNB shares rallying despite fall in Q3 net profit?

According to stock market experts, PNB’s net profit has declined due to high provisioning. Banking stock still at attractive valuations compared to its peers Bank of India (SBI) and Bank of Baroda (bob). He said that the share price of PNB has rebounded from its previous low. 49 each and it can go up 59 each level in the near term. Share can go up if this barrier is broken 64 more Level 70 in the medium to long term.

Speaking on PNB share price outlook, Vineet Bolinjkar, Head of Research, Ventura Securities said, “PNB share price is currently trading at 0.57X FY25 P/BV, which is significantly lower than peers – State Bank Of India (FY25 P/BV of 1.2X) and BoB (FY25 P/BV of 0.7X). We expect earnings to remain under pressure over the next 9-12 months as the company continues to hold on to back-book provisioning. However, with limited fresh stress formation and pick-up in loan growth, we see further scope for a re-rating in PNB.”

Why PNB is rising despite fall in share price net The bank’s profit, the Ventura expert said, “Despite strong topline growth, the bottom line was dragged down by a 40% YoY rise in provisions (from 4,713 crore). Despite the rise in provisions, the bank’s NPAs declined – GNPAs stood at 9.76% (down from 12.88% in Q3FY22) and NNPAs at 3.30% (down from 4.90% in Q3FY22). Fresh slippages up marginally 3,865 crore to 3,831 crore a year ago.

When asked about the pivot level in respect of Punjab National Bank shares, Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “The correction has been seen in PNB stock. 59 area and has reached the previous low 49 level is indicating a drop below the zone. Further the major support area of ​​the stock is since 47 45 band, which would be considered as critical levels below which the trend could turn very bearish. With a pullback visible, the near-term targets will once again be at the previous high The 59 zone will open the door for further breakouts 64 more 70’s level.”

PNB Q3 Results 2023

PNB’s Net Interest Income (NII) grew 17.6% YoY 9,179 crore, while its non-interest income grew by 23.6% 3,338 crores. The NII growth was driven by household credit growth of 11.8% and net interest margin (NIM) at 3.30% sequentially. PNB was able to hike policy rates through an increase in loan rates, which led to some increase in its deposit cost.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.