Punjab National Bank’s fundamental analysis highlights key financial metrics including market capitalization of ₹1,26,682 crore, PE ratio of 10.8, debt-to-equity ratio of 13.2, and return on equity of 8.54%. These figures reflect the company’s financial health and current market valuation.
Content:
- Punjab National Bank Overview
- Punjab National Bank Financial Results
- Punjab National Bank Financial Analysis
- Punjab National Bank Company Metrics
- Punjab National Bank Stock Performance
- Punjab National Bank Peer Comparison
- Punjab National Bank Shareholding Pattern
- Punjab National Bank History
- How To Invest In Punjab National Bank Share?
- Punjab National Bank Limited Fundamental Analysis – FAQs
Punjab National Bank Overview
Punjab National Bank, founded in 1894, is one of India’s largest and oldest banks. It offers comprehensive banking services such as loans, deposits, and investments, serving millions of customers through an extensive network of branches both domestically and internationally.
The company has a market capitalization of ₹1,26,682 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 19.5% below its 52-week high and 88.2% above its 52-week low.
Punjab National Bank Financial Results
Punjab National Bank’s financial results for FY 24 highlight robust growth in income and profitability. The bank has demonstrated resilience and operational efficiency, reflecting positively on its earnings and overall financial health.
Revenue Trend: Revenue increased from ₹88,339 crore in FY 22 to ₹1,22,394 crore in FY 24, showing consistent growth over the years.
Equity and Liabilities: The company’s equity includes a net profit of ₹9,157 crore in FY24, with liabilities reflected in provisions of ₹11,719 crore.
Profitability: Profit Before Tax surged to ₹13,332 crore in FY 24 from ₹4,594 crore in FY 22, indicating significant improvement in profitability.
Earnings Per Share (EPS): EPS grew to ₹8.27 in FY 24, up from ₹3.53 in FY 22, reflecting improved shareholder value and earnings performance.
Return on Net Worth (RoNW): The company’s Return on Net Worth (RoNW) has improved in FY24 due to higher net profit of ₹9,157 crore, but the significant tax rate and increased provisions have impacted overall returns.
Financial Position: The bank’s financial position is strengthened by increasing net interest income and a higher NIM, reflecting effective management and growth.
Punjab National Bank Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Total Income | 1,22,394 | 99,085 | 88,339 |
| Total Expenses | 97,343 | 76,153 | 67,314 |
| Pre-Provisioning Operating Profit | 25,051 | 22,932 | 21,026 |
| PPOP Margin (%) | 20.47 | 23.14 | 23.8 |
| Provisions and Contingencies | 11,719 | 18,071 | 16,431 |
| Profit Before Tax | 13,332 | 4,861 | 4,594 |
| Tax % | 37.53 | 36.86 | 19.99 |
| Net Profit | 9,157 | 3,359 | 3,908 |
| EPS | 8.27 | 3.04 | 3.53 |
| Net Interest Income | 40,530 | 35,028 | 29,419 |
| NIM (%) | 3.07 | 2.95 | 2.67 |
| Dividend Payout % | 18.14 | 21.38 | 18.13 |
*All values in ₹ Crores
Punjab National Bank Company Metrics
Punjab National Bank’s stock reflects significant performance metrics with a market capitalization of ₹1,26,682 crore. The current price stands at ₹115, showing resilience and growth potential. Investors observe a robust financial profile with solid returns and valuations.
Market Cap: The market capitalization of Punjab National Bank is ₹1,26,682 crore, indicating its substantial size and significant presence in the market.
Book Value: The book value per share is ₹100, representing the company’s equity value allocated to each share based on its financial statements.
Face Value: The face value of the stock is ₹2.00, reflecting the nominal value assigned to each share, which is standard for financial reporting.
Turnover: The asset turnover ratio stands at 0.07, demonstrating the efficiency with which the bank utilizes its assets to generate revenue.
PE Ratio: The price-to-earnings (P/E) ratio is 10.8, suggesting that the stock is relatively undervalued compared to its earnings potential.
Debt: Total debt amounts to ₹14,51,811 crore, highlighting the bank’s significant leverage and its capacity for large-scale financing.
ROE: The return on equity (ROE) is 8.54%, reflecting the bank’s effectiveness in generating profits from shareholders’ equity.
EBITDA Margin: The EBITDA margin is 66.2%, indicating a high level of operational profitability before accounting for interest, taxes, depreciation, and amortization.
Dividend Yield: The dividend yield stands at 1.29%, offering investors a return on their investment through periodic dividend payouts.
Punjab National Bank Stock Performance
The table indicates strong investment performance: a 12% return over 5 years, 45% over 3 years, and an impressive 84% over 1 year, showcasing significant growth and high returns on investment in shorter periods.
| Period | Return on Investment (%) |
| 5 Years | 12% |
| 3 Years | 45% |
| 1 Year | 84% |
Example
Consider an investor, A, who invested ₹1,00,000 five years ago. With a 12% return over this period, A’s investment would have grown to ₹1,12,000.
If A had invested ₹1,00,000 three years ago, the return would be 45%, making the investment worth ₹1,45,000.
For a one-year investment, the 84% return would increase ₹1,00,000 to ₹1,84,000.
Punjab National Bank Peer Comparison
The analysis of major Indian banks shows a range of PEG ratios from 0.07 to 1.85, indicating varying growth expectations. Despite negative short-term returns, Punjab National Bank and Indian Overseas Bank stand out with strong one-year returns, highlighting their robust performance.
| Sl No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | State Bank of India | 803 | 716871.04 | 0.1 | -1.1 | 43.19 |
| 2 | Punjab Natl.Bank | 113.57 | 125106.83 | 0.44 | -9.25 | 82.15 |
| 3 | Bank of Baroda | 239.45 | 123828.27 | 0.08 | -8.92 | 26.86 |
| 4 | I O B | 59.71 | 112959.88 | 1.85 | -3.07 | 96.74 |
| 5 | Canara Bank | 105.65 | 95777.57 | 0.07 | -7.08 | 60.29 |
| 6 | Union Bank (I) | 116.7 | 89061.79 | 0.14 | -17.06 | 26.57 |
| 7 | Indian Bank | 550.35 | 74130.16 | 0.09 | 1.94 | 40.7 |
Punjab National Bank Shareholding Pattern
The shareholding Pattern of the company reveals stable promoter ownership at 73.15% across all quarters. Foreign Institutional Investors (FIIs) have increased their stake from 2.65% to 5.51%, while Domestic Institutional Investors (DIIs) have slightly reduced their share from 13.8% to 10.76%. Retail and others maintain a consistent 10% ownership.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 73.15 | 73.15 | 73.15 | 73.15 |
| FII | 5.51 | 4.82 | 3.1 | 2.65 |
| DII | 10.76 | 12.37 | 13.74 | 13.8 |
| Retail & others | 11 | 10 | 10 | 10 |
Punjab National Bank History
Punjab National Bank (PNB) was established on May 19, 1894, driven by the vision of Indian patriots like Lala Lajpat Rai, who advocated for a national bank with Indian capital and management. The bank began operations on April 12, 1895, in Lahore, with the goal of using Indian capital for the country’s economic benefit rather than supporting British banks.
Throughout its history, PNB has demonstrated resilience and growth, particularly evident during periods of crisis, such as the banking sector collapse in 1913 and the upheavals of 1947. Post-independence, PNB expanded significantly, becoming a major public sector bank in India after nationalization in 1969.
As of September 2023, PNB operates a vast network of over 51,000 touchpoints, including 10,092 branches and 12,645 ATMs. Its global business reached ₹22.51 trillion. The bank also established the PNB IFSC Banking Unit in GIFT City in 2022 to cater to international banking needs, reflecting its continued commitment to innovation and service.
How To Invest In Punjab National Bank Share?
Investing in Punjab National Bank shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Punjab National Bank shares and place your buy order.
Punjab National Bank Limited Fundamental Analysis – FAQs
Punjab National Bank’s fundamental analysis shows a market capitalization of ₹1,26,682 crore, a P/E ratio of 10.8, a debt-to-equity ratio of 13.2, and an ROE of 8.54%, indicating its financial stability and market valuation.
The market capitalization of Punjab National Bank is ₹1,26,682 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Punjab National Bank (PNB) is a major public sector bank in India, founded in 1894. It provides a wide range of banking services, including deposits, loans, and investments, with a significant presence both domestically and internationally.
Punjab National Bank is primarily owned by the Government of India, which holds the largest shareholding. It operates as a public sector bank, meaning its ownership is distributed among the Indian government and other public and institutional shareholders.
The main shareholders of Punjab National Bank are the Government of India, which holds the majority stake, followed by institutional investors and public shareholders. The government remains the largest single shareholder, reflecting its significant role in the bank’s ownership.
Punjab National Bank operates in the banking and financial services industry. As a major public sector bank, it provides a range of financial services including retail and corporate banking, loans, deposits, and investment solutions.
To invest in Punjab National Bank shares, open a brokerage account with a SEBI-registered firm, deposit funds, and place a buy order for PNB stock through the stock exchange. Research the stock’s performance before investing.
Determining if Punjab National Bank is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
