Punjab National Bank’s (PNB) share price is projected to rise over 70% in the next 18 months, according to Ventura Securities. The firm has issued a BUY recommendation with a target of ₹161 per share, citing stable asset quality and strong financial growth.
Punjab National Bank (PNB), a leading public sector bank in India, is expected to see its share price surge by more than 70% in the next 18 months, according to a report by Ventura Securities. The brokerage firm has issued a BUY recommendation on PNB stock, setting a target price of ₹161 per share.
Ventura’s Growth Projection for PNB
Ventura Securities attributes its optimistic outlook to PNB’s stable asset quality, robust financial performance, and strategic growth plans. The firm forecasts that the bank’s net advances will rise from ₹9.34 lakh crore to ₹14.39 lakh crore by FY27, reflecting a compound annual growth rate (CAGR) of 15.5%. Additionally, deposits are projected to grow from ₹13.69 lakh crore to ₹19.44 lakh crore at a CAGR of 12.4%, driven by an increase in Current and Savings Account (CASA) deposits.
Strong Financial Position
Ventura expects the gross non-performing asset (GNPA) ratio to remain at 3.0%, while the net non-performing asset (NNPA) ratio is estimated at 0.3%, supported by efficient recovery strategies and a provision coverage ratio (PCR) of nearly 90%.
The brokerage firm projects an improvement in key financial indicators:
- Return on Assets (ROA) to stabilize at 0.9% (+40 basis points)
- Return on Equity (ROE) to rise to 12.3% (+430 basis points)
- Net Interest Margin (NIM) expected to increase to 2.6%
PNB’s Net Interest Income (NII) is forecasted to grow from ₹40,083 crore to ₹54,223 crore, while its Pre-Provisioning Operating Profit (PPOP) is expected to rise from ₹24,931 crore to ₹33,236 crore.
Stock Performance and Market Sentiment
On March 21, PNB share price opened at ₹91.46 per share, hitting an intraday high of ₹93.22 and a low of ₹91.02. Analysts suggest that the stock could experience short-term resistance at ₹95, with a breakout potentially pushing it towards ₹101.
According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, PNB stock has seen a 39.49% correction over the past 11 months but could be setting up for a recovery. However, he cautions that despite a potential short-term rally, the broader structure remains weak.
With Ventura Securities’ strong BUY recommendation and improving financial metrics, investor interest in PNB stock is expected to rise. However, analysts advise traders to monitor resistance levels before making investment decisions.
