PNB tanks over 8% in 2 days but PSU lender can still double your money within a year - check targets

Punjab National Bank (PNB) on Tuesday reported a 63 per cent decline in standalone net profit at Rs 411 crore for the July-September quarter on account of higher provisioning for bad loans.

Post PNB Q2FY23 result, brokerage firm Morgan Stanley has given an 'equal weight' rating with the target price of Rs 40. Photo credit: PTI

Shares of Punjab National Bank (PNB) ended lower on Wednesday tracking selling in domestic equity markets and a dip in standalone net profit for the September quarter. The stock of the public sector bank settled at Rs 39.10 on the NSE after cracking 2.49 per cent. The counter has tanked over 8 per cent in the last two days.

The state-owned bank on Tuesday reported a 63 per cent decline in standalone net profit at Rs 411 crore for the July-September quarter on account of higher provisioning for bad loans. The bank had posted a net profit of Rs 1,105 crore in the year-ago period. Total income in the second quarter of the current fiscal increased to Rs 23,001.26 crore as against Rs 21,262.32 in the July-September period a year ago, PNB said in a regulatory filing.

Provisions for bad loans increased to Rs 3,555.98 crore in the July-September quarter of FY23 as against Rs 2,692.74 crore in the year-ago period.

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With regard to asset quality, improvement was witnessed with the gross Non Performing Assets (NPAs) declining to 10.48 per cent of the gross advances from 13.36 per cent earlier.

PNB Share Price Target 2023

Post PNB Q2FY23 result, brokerage firm Morgan Stanley has given an 'equal weight' rating with the target price of Rs 40.

Last week, Zee Business panellist Rakesh Bansal and Kunal Saraogi recommended PNB stocks for investment, saying it can double investors' money from the current levels in less than a year.

"It is one of the cheapest PSU banks that has been underperforming for quite some time. The share price of PNB will surge in short term, mid-term as well as long-term. The target price is Rs 90 by June 2023," Rakesh Bansal had said.

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