Punjab National Bank (PNB) witnessed a sharp decline in its share price, plummeting over 3% during morning trade on the NSE (National Stock Exchange) on October 5, a day after the release of its September quarter business update
The trading day began with PNB’s share price opening at ₹80.70, a slight drop from the previous day’s closing at ₹79.75. By 12:30 pm, the share price had fallen to ₹76.85 on NSE, marking a 3.64% decrease.
In a filing made to the BSE (Bombay Stock Exchange) on October 4, Punjab National Bank reported a 13.9% year-on-year (YoY) increase in domestic advances, reaching ₹9,07,937 crore in Q2FY24. The bank’s global gross advances also saw a 13.8% YoY rise, contributing to a total business growth of 11.3% YoY.
PNB’s domestic deposits experienced an upswing, reaching ₹12,75,995 crore, indicating a 9.3% YoY surge. However, the CASA (Current Account Savings Account) deposits saw a more modest growth of 2.6% YoY. The credit-deposit ratio showed a notable rise of 262 basis points YoY, reaching 72.18%, as per the bank’s disclosure.
Global brokerage firm Morgan Stanley has retained its underweight stance on the stock, setting a target price of ₹55.
Amidst these updates, Morgan Stanley highlighted concerns, pointing out elevated stress levels arising from the restructured book and the MSME (Micro, Small, and Medium Enterprises) segment as significant risks for PNB’s future performance.
