Punjab National Bank (PNB)
Large CapFinancial Services stocks · Large cap · NSE
Punjab National Bank (PNB) is a large public sector bank in India, offering a comprehensive range of banking and financial services. The bank operates through a vast network of domestic and international branches, focusing on retail, agriculture, MSME, and corporate segments, alongside digital banking initiatives.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 55/100Rev +3% YoY · PAT +169% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹33,589 Cr | +3.1% | +2.4% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹5,835 Cr | +169.3% | +4.2% |
| PAT margin | 17.4% | +1072 bps | +29 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
PNB reports strong Q1 FY27 net profit growth of 213.6% YoY, driven by improved asset quality with GNPA at 2.78% and NNPA at 0.28%. Global advances grew 12.7% YoY, but NIM declined sequentially.
While headline net profit growth is impressive, it benefits from a low base (Q1 FY26 RoA 0.37%). Sequential NIM compression and modest QoQ operating profit growth suggest underlying challenges. Asset quality improvement is positive, but sustainability of earnings growth needs close monitoring.
Domestic Credit Mix – June’26
Latest issuer-disclosed distribution across 4 reported categories.
RAM Advances Growth
RAM (Retail, Agriculture, MSME) advances grew by 12.8% YoY to Rs 6,88,487 Cr, with its share in domestic advances at 57.2%.
Digital Lending
Total digital lending sanctions in Q1 FY27 amounted to Rs 19,079.20 Cr across 506,909 accounts, covering Retail, Agriculture, and MSME segments.
Retail Advances (Excl. IBPC)
Retail advances excluding IBPC grew by 17.5% YoY to Rs 2,57,064 Cr, with Vehicle Loan growth at 34.4% YoY.
Solar Power Plant Capacity
3735 KWp solar power plant capacity installed in owned buildings, branches, and ATMs. An additional 1986 KWp is under execution at HO Buildings.
Resilient Indian Economy
India's GDP projected at 7.0% for CY 2026, standing out among major economies with strong domestic fundamentals.
Consumption & Infra Investment
Rural demand recovery, tax relief, strong public and private capex momentum, and IT/Financial Services driving growth.
Banking Sector Health
Banking sector credit growth at a 9-quarter high in June'26, with stable asset quality and adequate capital.
Geopolitical Uncertainties
West Asia conflict and trade restrictions are identified as major headwinds.
Crude Oil Volatility
Volatile crude prices contribute to current account deficit and imported inflation.
Inflationary Pressures
El-Nino effect and lower Kharif sowing are cited as factors contributing to inflationary pressures.
NIM Compression
Global NIM declined sequentially from 2.61% in Q4 FY26 to 2.50% in Q1 FY27, impacting profitability.
Treasury Income Volatility
Other income declined 17.7% YoY, with Profit on Sales on Investments down 67.8% YoY, indicating volatility in treasury operations.
NBFC Sector Exposure
NBFC sector exposure is Rs 221,717 Cr, with 98.63% rated AAA & AA. While highly rated, concentration risk remains.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for a seasonal business like banking to account for cyclical trends. QoQ comparison provides insight into sequential momentum, asset quality trends, and operational efficiency.
Global Advances Growth
Global Advances grew by 12.7% YoY to Rs 12,73,132 Cr and 1.2% QoQ.
Global Deposits Growth
Global Deposits grew by 8.5% YoY to Rs 17,24,837 Cr and 0.8% QoQ.
Net Interest Margin (NIM)
UNDER_STRESSNIM (Global) stood at 2.50% in Q1 FY27, down from 2.61% in Q4 FY26 and 2.70% in Q1 FY26.
Gross NPA %
INTACTGross NPA % improved to 2.78% in Q1 FY27, down 100 bps YoY and 0.17% QoQ.
FY27 Credit Growth Target
Management guides for 12%-13% YoY credit growth for FY27.
FY27 Deposit Growth Target
Management targets 9%-10% YoY deposit growth for FY27.
Asset Quality Improvement
Management aims for Gross NPA % below 2.50% and Net NPA % below 0.3% for FY27.
Digital Transformation & AI
Bank is augmenting digital base, expanding predictive analytics, and partnered with Microsoft for AI enablement program for officers.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| NIM % | 2.50% | Improvement towards management's guidance of 2.60%-2.70% for FY27. |
| Deposit Growth % (YoY) | 8.5% | Acceleration towards the 9%-10% guidance to support credit expansion and manage funding costs. |
| Gross NPA % | 2.78% | Continued reduction below the management's target of <2.50% for FY27. |
| Operating Profit Growth % (YoY) | 6.2% | Improvement towards the 9%-10% guidance for FY27, indicating sustainable core profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
63BullishSMA20 +5.2% / mo · MACD −
Technical chart
PNBdaily · 1Y · AUTO-4.3%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 58.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~5.0% over last month) — short-term momentum positive.
- RSI(14) at 58 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 13% off 52W high · 19% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 4.7% of the 30-week proxy.
- The 30-week proxy changed -1.0% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 67 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 67 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 18.6%.
- Fair-value margin of safety is positive at 78.0%.
- Cash flow contributes 10/10 to the score.
Main drags
- Altman Z is 1.8, in distress territory.
- Quality is weaker at 2/20; verify the latest quarterly trend.
- Balance sheet is weaker at 4/15; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 69th percentile of the scored universe and 81st percentile within Financial Services. Main check: financial discipline is weak at 56/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Altman Z is 1.76.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 81st pctile, median 62 · Large: 47th pctile, median 73
92 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 18.6%.
- ▸8 years of positive FCF.
- ▸Debt/equity is 0.06.
Trust risks
- ▸Altman Z is 1.76.
- ▸Promoter holding is only 3%.
- ▸ROCE is low at 6.1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 6.09
- P/B
- 0.86
- EV/EBITDA
- —
- Market Cap
- 134467.00Cr
Profitability
- ROE
- 13.00%
- ROCE
- 6.13%
- ROA
- 1.09%
- Dividend Y
- 2.56%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 48.00%
- Revenue 3Y
- 15.00%
- EPS 3Y
- 76.00%
Balance Sheet
- Debt/Equity
- 0.06
- Interest Coverage
- —
- Altman Z
- 1.76
- Book Value
- 136.00
Cash Flow
- FCF Yield
- 18.61%
- FCF Positive Y
- 8/5
- OCF
- 25635.00 Cr
- EPS TTM
- 19.22
Shareholding
- Promoter Hold
- 3.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 51%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.