CLSA has maintained its outperform rating on Punjab National Bank (PNB) and raised the target price to ₹130, implying a potential upside of around 20% from the current market price of ₹108.11.
According to CLSA, PNB delivered an overall good quarter with a 5% beat on profit before tax (PBT). The bank reported robust deposit and loan growth of 11% and 13% year-on-year, respectively—outpacing several peers in the sector.
Net interest margin (NIM) at the global level moderated by only 11 basis points, which the brokerage said was better than expected. On the asset quality front, PNB posted a benign performance, with a sequential improvement in both the overall slippage ratio and the segment-wise gross non-performing asset (GNPA) ratio.
Looking ahead, CLSA forecasts loan and deposit growth to normalize to around 10% in FY26, down from the 14–15% levels seen in FY25. It also expects a 25 basis point moderation in NIM, as the full impact of policy rate cuts flows through.
Disclaimer: The views expressed in this article are based on brokerage reports and do not constitute investment advice. Please consult your financial advisor before making any investment decisions.
