Punjab National Bank (PNB) shares saw a significant rise of over 7% in Monday morning trading following the announcement of its Q1 results over the weekend. The stock opened at ₹124.86, about 4% higher than its previous close of ₹119.95 on the NSE, and peaked at ₹128.66, marking an intraday gain of more than 6%.
The bank reported its highest-ever quarterly standalone profit of ₹3,252 crore, a 159% increase year-on-year, driven by higher interest revenue and a reduction in bad loans. The net interest income (NII) for Q1FY25 rose by 10.2%, reaching ₹10,476.2 crore, up from ₹9,504.3 crore in the same period last year.
While PNB’s net profit slightly missed Jefferies’ estimates due to increased operating expenses related to Priority Sector Lending Certificates (PSLCs), the bank’s performance remained strong. Jefferies highlighted lower slippages at 0.8% and strong recoveries, with coverage at 88%, indicating low credit costs for the next 1-2 years. Jefferies has rated PNB shares as a “Buy” with a target price of ₹150, based on its FY25 estimates.