Posted on May 8, 2025, by Niftynews
PNB Q4 Results FY25 are out, and they reflect a steady recovery for Punjab National Bank—one of India’s largest public sector lenders. The bank posted a strong 52% YoY rise in net profit for the quarter ended March 2025, with a notable improvement in asset quality and healthy growth in advances and deposits. However, the PNB share price has yet to break out, and investors are watching for cues.
As margins continue to compress and provisioning pressures rise, is this the right time to invest in PNB share? Let’s break down the key figures, analyst targets, and what it means for the future of Punjab National Bank.
📊 Key Financials: PNB Q4 Results FY25 At a Glance
- Net Profit: ₹4,567 crore (vs ₹3,010 crore in Q4 FY24) – up 51.7% YoY
- Net Interest Income (NII): ₹10,757 crore (vs ₹10,363 crore YoY)
- Net Interest Margin (NIM): 2.81% (vs 2.93% in Q3 FY25 and 3.10% in Q4 FY24)
- Dividend: Declared (details pending)
- Advances Growth: 13.6% YoY
- Deposits Growth: 14.4% YoY
- Yield on Advances: 8.36% (slightly lower from 8.38% in Q3)
- Cost of Funds: Rose to 4.76% (from 4.63% in Q3)
The combination of strong profit, business growth, and asset quality gains gives a solid foundation, but NIM contraction and slippages in key segments kept investor sentiment cautiously optimistic.
📈 PNB Share Price: What Do Analysts Say?
Following the PNB Q4 results, brokerages are divided between “Buy” and “Accumulate” recommendations. Here’s how they’re pricing PNB share:
💬 Nirmal Bang
- Focus: Growth in other income, solid deposit and advance numbers
- Concerns: Shrinking NIMs and rising cost of funds
- Target Price: ₹102 (raised from ₹101)
- Rating: Buy
- Note: Target based on 0.66x P/B valuation, 20.5% above 5-year average
🟢 Motilal Oswal Financial Services (MOFSL)
- Called it a “moderate quarter”
- Missed NII estimates but beat business growth guidance
- Increase in agri/MSME slippages offset by better recoveries
- Target Price: ₹125
- Rating: Buy
🟡 CLSA
- Upgraded its stance on the stock
- Cited improved metrics and recovery potential
- Target Price: ₹120 (raised from ₹80)
- Rating: Accumulate
🏦 Sector Comparison: How Does Punjab National Bank Stack Up?
Among PSU banks, Punjab National Bank has remained a consistent performer in terms of operational stability and capital adequacy. Let’s see how it compares with peers like Bank of Baroda and Canara Bank:
| Metric | Punjab National Bank | Bank of Baroda | Canara Bank |
|---|---|---|---|
| Net Profit (Q4) | ₹4,567 Cr | ₹4,886 Cr | ₹3,757 Cr |
| NIM (%) | 2.81% | 3.27% | 2.95% |
| Advances Growth | 13.6% YoY | 11.5% YoY | 12.8% YoY |
| Asset Quality | Improving | Stable | Improving |
| Dividend Declared | Yes | Yes | Yes |
PNB trails slightly on margins but outperforms in terms of profit growth and asset quality improvements. It continues to build on its retail and MSME lending strategy.
🔍 Asset Quality & Slippages
One of the highlights of the PNB Q4 results FY25 was the steady improvement in asset quality despite sector-wide stress.
- Slippages: Higher in agri and MSME segments
- Recoveries: Strong, aiding in better Net NPA ratios
- Provisions: Higher than estimated, signaling a conservative stance
This signals that while PNB share price faces pressure from slippages, the long-term picture remains positive thanks to disciplined recovery and provisioning.
📉 Risks to Monitor
Even with strong quarterly growth, investors should remain cautious of:
- Margin Pressures: NIM continues to decline, limiting NII growth
- Higher Provisions: Can weigh on future profits if slippages persist
- Interest Rate Sensitivity: PSU banks are highly sensitive to rate movements
- Volatility in PNB Share Price: Market may overreact to short-term earnings volatility
📈 What’s Next for PNB Share Price?
Despite the concerns, all signs point toward a favorable medium-term outlook:
- Analysts’ target prices suggest a 10–25% upside from current levels
- Continued asset quality improvement supports valuations
- PNB has outperformed sector deposit and loan growth averages (vs industry’s 10.3% and 11%)
The PNB share is currently trading at under ₹100, making it an attractive bet for value investors, especially as the bank looks to consolidate its performance in FY26.
💼 Punjab National Bank: Long-Term Strategy
As part of its transformation strategy, Punjab National Bank continues to focus on:
- Digital banking innovation and retail outreach
- MSME and agriculture sector lending
- Recovery and resolution efficiency
- Reducing credit costs and improving margins through liability optimization
These efforts, combined with capital infusion and improved governance, place PNB in a solid position among PSU lenders.
✅ Final Verdict: Is PNB Share a Buy After Q4 FY25?
The PNB Q4 Results FY25 show a bank that’s executing well in a challenging interest rate environment. While margin pressures and provisioning remain key risks, the underlying fundamentals—profit growth, strong advances/deposits, and improved asset quality—point to a steady recovery.
