Sharekhan's research report on Punjab National Bank
Ability to manage NIMs and favorable bond yields are additional drivers, which would keep sentiment positive. PNB is also well-placed to grow the book without worrying about deposit growth in a tight liquidity environment led by comfortable credit-deposit CD ratio and excess liquidity. Recent correction in the stock price provides a good entry opportunity. At the CMP, the stock trades at 1.1x/ 1.0x its FY2025E/FY2026E BV.
Outlook
We maintain a Buy on PNB with a revised PT of Rs. 140. Earnings trajectory is set to improve led by lower provisions/ opex cost from here on driving better RoA/RoE.
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