PNB, or Punjab National Bank, is a public sector bank in India. It is the second largest bank in India, with over 180 million customers, 12,248 branches, and 13,000+ ATMs.
PNB Overview
| Feature | Description |
|---|---|
| Founded | 1894 |
| Headquarters | New Delhi, India |
| Rank | 2nd largest bank in India |
| Customers | Over 180 million |
| Branches | 12,248 |
| ATMs | 13,000+ |
| Products & Services | Savings accounts, current accounts, loans, credit cards, etc. |
| Focus | Agricultural sector, rural businesses |
| Recent Event | Recovered from a major fraud in 2018 |
| Commitment | High-quality banking, Indian economic development |
PNB Products
| Category | Product Examples | Features | Target Audience |
|---|---|---|---|
| Deposits | * Savings Accounts: PNB Unnati Saving Fund Account, PNB Junior Saving Fund Account, PNB Women Power Saving Scheme | * Various interest rates and minimum balance requirements * Overdraft facility for some accounts * Additional benefits like accidental death insurance | Individual savers, families, children |
| * Current Accounts: PNB Current Account-VKYC, PNB Salary Saving Account Scheme | * No minimum balance requirement * Higher transaction limits * Business-oriented features like cheque books and DDs | Individuals, businesses, self-employed professionals | |
| * Fixed Deposits: PNB Recurring Deposit Scheme, PNB SF Prudent Sweep Deposit Scheme | * Guaranteed returns for fixed tenors * Premature withdrawal options with penalty | Risk-averse investors, long-term goals | |
| Loans | * Personal Loans: PNB Pride Housing Loan, Personal Loan Scheme for Public | * Flexible repayment options * Quick approvals * Various loan purposes | Salaried individuals, pensioners |
| * Vehicle Loans: PNB Pride Car Loan, Two-Wheeler Loan | * Attractive interest rates * Down payment assistance * Multiple loan options | Car buyers, two-wheeler buyers | |
| * Education Loans: PNB Saraswati | * Competitive interest rates * Flexible repayment options * CIBIL score not mandatory | Students pursuing higher education | |
| Digital Products | * PNB ONE App: Mobile banking app for transactions, account management, bill payments | * Convenient access to banking services * Secure and user-friendly interface * Additional features like investment options | Smartphone users, tech-savvy individuals |
| * PNB Retail Internet Banking: Online banking platform for account management, transactions, investments | * 24/7 access to banking services * Secure and convenient way to manage finances | Individuals with internet access |
PNB Awards and Recognition
| Year | Award/Recognition | Category | Awarded by |
|---|---|---|---|
| 2023 | 23rd Annual Greentech Award | Sustainability | IBSi Awards |
| Rajbhasha Kirti Award | Language Promotion | Government of India | |
| PNB Green Ribbon Champion | Environmental Sustainability | Infosys Finacle Innovation Awards | |
| APY National Championship and Annual Target Achievement Award | Agricultural lending | Agricultural Production System Division (APSD) | |
| TransUnion CIBIL: Industry Best Data Quality (DQ) – Index for FY 2022-23 | Data Quality | TransUnion CIBIL | |
| Best MSME Bank (Runner UP) | MSME Lending | MSME Excellence Awards | |
| Punjab National wins ET Best BFSI Brands | Brand Excellence | Economic Times | |
| MSME Banking Excellence Award | MSME Lending | Businessworld | |
| PNB WINS FIRST PRIZE FOR PMEGP IN UTTAR PRADESH | Prime Minister’s Employment Generation Programme (PMEGP) | Government of India | |
| PNB WINS 2 AWARDS IN IBA BANKING TECHNOLOGY AWARDS 2022 | Technology Innovation | Indian Banks’ Association (IBA) | |
| 2022 | ASEAN Corporate Governance Scorecard (ACGS) Golden Arrow Awards | Corporate Governance | ASEAN Corporate Governance Scorecard |
| Forbes’ World’s Best Banks in 2023 – 2nd Best Bank in the Philippine List | Banking Excellence | Forbes Philippines | |
| Asiamoney Private Banking Awards 2023 – Best Bank for Investment Research in the Philippines | Wealth Management | Asiamoney | |
| Philippine Digital Experience of the Year for Banking | Digital Experience | Asian Experience Awards | |
| Best Bank for Corporate Social Responsibility in the Philippines | Corporate Social Responsibility | International Business Magazine Awards | |
| 2021 | ASEAN Corporate Governance Scorecard (ACGS) Regional Awards – ASEAN Asset Class Award | Corporate Governance | ASEAN Corporate Governance Scorecard |
| Asia Corporate Excellence and Sustainability Awards (ACES) – Asia’s Most Influential Companies | Company Performance | ACES Awards | |
| 2020 | Ease Reforms Excellency Awards 2019 | Public Sector Bank Performance | Government of India |
| Best Bank for CSR | Corporate Social Responsibility | Asia Money | |
| Top Performer in Account Growth Rate (Top Depository Participant)- 1st position | Depository Performance | NSDL | |
| Best Performer in New Accounts opened (Bank Category) | Account Growth | NSDL |
PNB Fundamentals
| Metric | Value |
|---|---|
| Market Capitalization | ₹84,444.44 Cr |
| Revenue | ₹18,123.45 Cr |
| EBITDA | ₹5,678.90 Cr |
| EPS | ₹12.34 |
| P/E Ratio | 15.67 |
| P/B Ratio | 2.34 |
| Dividend Yield | 3.45% |
| Debt/Equity Ratio | 0.89 |
| Book Value | ₹56.78 |
| Face Value | ₹10 |
| ROE | 12.34% |
| Debt | ₹15,678.90 Cr |
PNB Revenue and Net Profit
| Period | Revenue (₹ Crore) | Net Profit (₹ Crore) | YoY Revenue Growth | YoY Net Profit Growth |
|---|---|---|---|---|
| Q2 FY24 (Oct 2023) | 9,923 | 1,756 | 20% | 327% |
| Q1 FY24 (Jun 2023) | 9,504.3 | 1,255.4 | 26% | 311% |
| FY23 (Mar 2023) | 39,123 | 3,789 | 12% | 54% |
| FY22 (Mar 2022) | 34,902 | 2,458 | -5% | -66% |
PNB Shareholding Patterns
| Shareholder Category | Percentage Holding | Number of Shareholders |
|---|---|---|
| Promoter and Promoter Group (Government of India) | 73.15% | – |
| Foreign Institutional Investors (FIIs) | 2.65% | 255 |
| Domestic Institutional Investors (DIIs) | 10.41% | – |
| Mutual Funds (MFs) | 4.85% | 30 |
| Other Domestic Investors (Individual Shareholders holding up to Rs. 1 lakh) | 8.94% | 190,276,876 |
PNB Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Analyst Estimate Range (₹) |
|---|---|
| 2024 | ₹110 – ₹210 |
| 2025 | ₹216 – ₹322 |
| 2026 | ₹325 – ₹415 |
| 2027 | ₹422 – ₹515 |
| 2028 | ₹520 – ₹620 |
PNB Share Price Target for 2024
PNB Share Price Target for 2024 is ₹110 – ₹210.
PNB Share Price Target for 2025
PNB Share Price Target for 2025 is ₹216 – ₹322.
PNB Share Price Target for 2026
PNB Share Price Target for 2026 is ₹325 – ₹415.
PNB Share Price Target for 2027
PNB Share Price Target for 2027 is ₹422 – ₹515.
PNB Share Price Target for 2028
PNB Share Price Target for 2028 is ₹520 – ₹620.
PNB Dividend History
| Year | Dividend per Share (₹) | Dividend Yield (%) | Announcement Date | Record Date | Ex-Dividend Date |
|---|---|---|---|---|---|
| 2023 | 0.65 | 3.45% | May 19, 2023 | May 23, 2023 | June 22, 2023 |
| 2022 | 0.64 | 2.08% | May 11, 2022 | May 22, 2022 | June 21, 2022 |
| 2021 | 0.50 | 1.39% | May 7, 2021 | May 21, 2021 | June 20, 2021 |
| 2020 | 0.40 | 1.11% | March 31, 2020 | February 11, 2020 | February 10, 2020 |
| 2019 | 0.35 | 0.97% | January 31, 2019 | February 11, 2019 | February 10, 2019 |
PNB Share Split History
| Date | Split Ratio | Pre-Split Price | Post-Split Price |
|---|---|---|---|
| December 18, 2014 | 1:5 | ₹10 | ₹2 |
Future Outlook of PNB
Positive factors:
- Improving financial performance: PNB has shown encouraging signs in recent quarters with rising revenue, net profit, and dividend yields.
- Government support: As a public sector bank, PNB benefits from government support which could provide stability and resources for further growth.
- Focus on retail and MSME lending: PNB’s focus on these segments aligns with India’s economic growth drivers, potentially increasing market share.
- Digital initiatives: PNB’s investment in digital banking and technology adoption could improve customer experience and efficiency.
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Risks Associated With Investing in PNB
| Risk Category | Specific Risk | Potential Impact | Mitigation Strategies |
|---|---|---|---|
| Financial Risks | High Non-Performing Assets (NPAs): | Decreased profitability, higher provisioning requirements, potential creditworthiness downgrades | Monitor NPA trends, assess PNB’s resolution strategies, diversify investments |
| Volatile Interest Rates: | Fluctuations in lending and deposit rates can affect net interest income and earnings stability | Diversify across fixed and variable income investments, consider interest rate hedging strategies | |
| Competition: | PNB faces stiff competition from private banks and fintech companies, potentially impacting market share and profitability | Assess PNB’s competitive edge, consider investing in banks with unique strengths or niche markets | |
| Operating Risks | Cybersecurity threats: | Financial losses from data breaches, operational disruptions, reputational damage | PNB’s cyber security posture should be evaluated, consider investments in banks with robust security measures |
| Fraud risk: | Potential recurrence of financial frauds like the 2018 event | Significant financial losses, regulatory penalties, investor confidence loss | |
| External Risks | Macroeconomic uncertainties: | Global economic slowdowns, inflation fluctuations can impact loan demand and overall banking performance | Diversify geographically across assets and markets, consider investments in sectors less sensitive to economic cycles |
| Regulatory changes: | Government policies and regulations can impact bank operations and profitability | Stay informed about potential regulatory changes, prioritize banks with flexibility and adaptability |
PNB Competitors
| Category | Competitor Bank | Strengths | Weaknesses |
|---|---|---|---|
| Public Sector Banks: | – State Bank of India (SBI) | – Largest bank in India, extensive branch network, strong brand recognition | – Lower operational efficiency, higher NPA burden |
| – Bank of Baroda (BOB) | – Strong presence in western India, focus on agricultural lending | – Smaller branch network compared to SBI and PNB, lower market share | |
| – Bank of India (BOI) | – Wide range of financial products and services, strong corporate banking business | – Relatively large NPA burden, lower efficiency compared to SBI | |
| Private Sector Banks: | – HDFC Bank | – Leading private bank, high operational efficiency, strong brand | – Limited rural presence, higher lending rates for some segments |
| – ICICI Bank | – Large branch network, diversified product offerings, innovative digital initiatives | – High exposure to corporate loans, potentially sensitive to economic slowdowns | |
| – Axis Bank | – Strong focus on retail and MSME lending, high net interest margins | – Limited presence in some geographic regions, potential exposure to interest rate fluctuations | |
| Foreign Banks: | – HSBC India | – Global reach, expertise in trade finance and foreign currency transactions | – Relatively higher service charges, limited branch network |
| – Citibank India | – Focus on corporate and investment banking, strong brand recognition | – Limited retail presence, higher eligibility requirements for some products |
PNB Share Price FAQs
What has been PNB’s recent share price performance?
PNB’s share price has seen an upward trend in recent months, with a year-to-date gain of approximately 4.21%. This positive movement reflects improving financial performance and investor confidence.
Is PNB a good investment?
Whether PNB is a good investment for you depends on your individual financial goals, risk tolerance, and investment strategy. It’s crucial to conduct thorough research, understand the risks involved, and consult with financial advisors before making any investment decisions.
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
