PNB Reports 51.7% Jump In Net Profit, Rs 2.90/Sh Dividend; Buy?

Leading public sector lender Punjab National Bank share price declined 0.32% in trade today on Bombay Stock Exchange (BSE) to Rs 94.25 per share. The PSB recommended a dividend of Rs 2.90 per equity share of the face value of Rs 2/- each for the financial year 2024-25. The Board of Directors also considered fundraising of Rs 8,000 crore for FY 2025-26. Meanwhile, the PSU declared a jump of 51.7% year-on-year (YoY) in its net profit for Q4FY25 to Rs 4,567 crore as against the net profit of Rs 3,010 crore announced in Q4FY2024 as a result of higher interest income and improved asset quality. PNB shares delivered 178% returns in last 3-years.

The bank informed that its net interest income (NII) surged to Rs 10,757 crore for Q4FY25, up 3.8% from Rs 10,363 declared in the corresponding quarter of last year. It is worth noting that the stake of Life Insurance Corporation Of India (LIC) stood at 9.15% in PNB for March 2025 quarter with 1,052,176,550 shares of the bank. LIC stake zoomed from Dec 2024 quarter (8.32%) to 9.15% for March 2025 quarter. FII/FPI holdings zoomed marginally from 5.70% to 5.71% for March 2025 quarter. Check more details below:

PNB Announces Rs 2.90/Sh Dividend, 51.7% Jump In Net Profit; Buy?

PNB Recommends Dividend

According to the exchange filing of the PSB dated May 07, 2025, “Recommended Dividend of Rs. 2.90 per equity share (145%) of face value of Rs.2/-each for FY 2024-25, subject to approval of the shareholders at the ensuing Annual General Meeting of the Bank.”

PNB Approves Fundraising

The exchange filing added, “Considered the proposal of raising of capital for an amount up to Rs. 8000 crore through issuance of Basel Ill compliant Bonds (Additional Tier-I Bonds up to Rs. 4000 crore and Tier- II Bonds up to Rs. 4000 crore), to be raised in one or more tranches during FY 2025-26.”

AGM Date Fixed

The bank will convene its Annual General Meeting on June 27, 2025.

PNB Q4 Results

The bank announced that its total income for Q4FY25 zoomed by 13.4% YoY to Rs 36,705 crore amid health growth in net interest income and non-interest income. Meanwhile, non-interest income for Q4 FY25 declared at Rs 4,716 crore, indicating a growth of 11.0%. Return on Assets (RoA) improved by 25 bps to 1.02% in Q4 FY’25 from 0.77% in Q4 FY’24.

Punjab National Bank Shares Performance

The 52-week high of PNB share price on Bombay Stock Exchange stood at Rs 138.50 per share (as on 03/06/2024) and 52-week low price is Rs 85.50 per share (as on 04/03/2025), respectively. PNB shares declined 5.92% in last 1-week, slipped over 11% in last 6-months, and fell 22.94% in last 1-year. The stock offered returns of 79.83% in last 2-years and gave triple digit returns in last 3-years at 178%.

Should You Buy PNB Shares?

Out of a total of 16 analysts tracking the stock, 5 recommended strong buy, 4 suggested buy call, 3 assigned hold call, 1 has sell call, and 3 gave strong sell call, according to Trendlyne. Earlier, brokerage house Ventura (in its March 20, 2025 report) expects PNB shares likely to rise strongly over the next 18 months. The analyst recommended buy call with target price of Rs 161 per share. Ventura believes that the asset quality of the PSY likely to remain strong with a gross non-performing asset (GNPA) ratio of 3.0% and a net non-performing asset (NNPA) ratio of 0.3%, backed by cautious underwriting and recovery policies, while the provision coverage ratio (PCR) is likely to revolve around 90%.

InCred Equities has add call on PNB share with target price of Rs 111 per share. Calling it as the preferred pick, the analyst expects that the PSB is likely to benefit from benign credit costs and strong likelihood from recoveries in written-off accounts and potential tax rate declines.

Disclaimer: The stock has been picked from the brokerage report of Ventura and InCred. Moneydaily.in, the author, and the respective brokerage house will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.