PNB Share Price After Q4 Results 2025: Is It Time to Buy Punjab National Bank Stock?

PNB Share Price After Q4 Results 2025: Punjab National Bank (PNB) dropped jaws with a 52% surge in net profit to ₹4,567 crore in its Q4 FY25 results, announced on May 7, 2025. The PSU banking giant also declared a ₹2.90 per share dividend, sparking excitement among investors. But with PNB shares sliding 0.32% to ₹94.25 post-results and a 23.14% loss over the past year, is this stock a golden opportunity or a risky bet? Let’s dive into the numbers, expert insights, and market trends to help you decide.

PNB Q4 FY25 Results: Key Highlights

PNB’s Q4 performance was a mixed bag of stellar growth and cautious signals. Here’s what stood out:

• Net Profit Soars: Standalone net profit jumped 51.7% YoY to ₹4,567 crore from ₹3,010 crore, driven by strong recoveries and treasury gains.
• Net Interest Income (NII): Up 3.8% YoY to ₹10,756.98 crore, though it dipped 2.55% QoQ due to margin pressures.
• Asset Quality Improves: Gross NPA ratio dropped to 3.95% from 5.73%, and net NPA fell to 0.40%, signaling better risk management.
• Dividend Announcement: A ₹2.90 per share dividend (145% of face value) was recommended, pending shareholder approval.
• Capital Raising: PNB plans to raise ₹8,000 crore via Basel III-compliant bonds in FY26 to bolster its capital base.
• Loan and Deposit Growth: Global advances grew 13.56% YoY to ₹11,16,637 crore, and deposits rose 14.2% YoY.

Source: LiveMint, Financial Express

PNB Share Price Performance

Despite the robust Q4 results, PNB’s stock hasn’t been a crowd-pleaser lately:

• Recent Movement: Shares closed 0.32% lower at ₹94.25 on May 7, 2025, after hitting an intraday high of ₹96.90.
• Long-Term Gains: Delivered a stellar 221% return over 5 years, making it a multibagger for long-term investors.
• Short-Term Struggles: Lost 23.14% in the last year and 8.44% YTD in 2025, with a 52-week high of ₹138.50 (June 2024) and low of ₹85.50 (March 2025).
• Technical View: Analysts note a failed breakout above ₹100-₹102, with potential downside to ₹88-₹90 if it doesn’t reclaim ₹102 soon.

Source: BSE, LiveMint

Should You Buy PNB Stock? Expert Opinions

The jury is split on PNB’s investment potential:

• Bullish View: Seema Srivastava (SMC Global Securities) sees a positive long-term outlook due to improving profitability and asset quality. She advises long-term investors to consider PNB, but warns of margin pressures and cost control challenges.
• Bearish Caution: Anshul Jain (Lakshmishree Investment and Securities) flags a failed breakout at ₹100-₹102, suggesting selling pressure and a possible drop to ₹88-₹90. He recommends waiting for a reclaim above ₹102 before buying.
• Brokerage Insights:
  • Investec: Maintains a “Sell” rating, cutting the target price to ₹85, citing weak NIM delivery and slower loan growth.
  • Citi: Also holds a “Sell” rating with a ₹91 target, noting higher slippages and a softer RoA outlook.
  • Motilal Oswal: More optimistic, setting a ₹125 target, implying a 31% upside from current levels.

Why PNB Could Be a Buy

• Strong Fundamentals: Doubling of FY25 profit to ₹16,630 crore and a low P/E ratio of 6.46 make PNB undervalued compared to peers (sector P/E: 9.08).
• Dividend Yield: At 1.59%, PNB offers a decent passive income stream for income-focused investors.
• Asset Quality: Significant reduction in GNPA (3.95%) and net NPA (0.40%) reflects better risk management.
• Growth Initiatives: Digital transformation (e.g., PNB One app) and international expansion (Dubai, London) diversify revenue streams.

Risks to Watch

• Margin Pressure: Net interest margin (NIM) slipped to 2.81% in Q4 FY25 from 3.10% a year ago, raising concerns about profitability.
• Market Volatility: PNB’s stock has been volatile, with a 26% decline over the past year, underperforming the Nifty Bank index.
• Technical Weakness: Failure to hold above ₹102 suggests short-term bearish momentum, with support at ₹88-₹90.
• Fraud Allegations: Ongoing issues like the Bhushan Power fraud case and past scams (e.g., Nirav Modi) could dent investor confidence.

Technical Analysis

• Support Levels: ₹92.20, ₹90.40, ₹88.05
• Resistance Levels: ₹96.35, ₹98.70, ₹100.50
• Moving Averages:
  • 5-day SMA: ₹100.82, EMA: ₹98.38
  • 20-day SMA: ₹99.30, EMA: ₹98.69
  • 50-day SMA: ₹94.65, EMA: ₹97.20
• Outlook: The stock is trading below its 5-day and 20-day SMAs, indicating short-term weakness. A breakout above ₹102 could signal a bullish reversal.

Comparison with Peers

Bank	Market Cap (₹ Cr)	P/E Ratio	Dividend Yield	1-Year Return
PNB	1,08,033	6.46	1.59%	-23.14%
Bank of Baroda	1,45,000	7.20	1.80%	-10.50%
Axis Bank	3,50,000	14.50	0.80%	+12.30%
SBI	7,20,000	8.90	1.40%	+15.60%

Source: Financial Express, NSE

Investor Sentiment on X

Posts on X reflect mixed sentiment:

• Some investors are bullish, citing PNB’s strong Q4 PAT and dividend as reasons to buy.
• Others are cautious, pointing to brokerage downgrades (e.g., Investec, Citi) and technical weaknesses.
• The stock’s 6.22% weekly decline has sparked debates on whether it’s a buying opportunity or a trap.

Note: Sentiment on X is inconclusive and should not be the sole basis for investment decisions.

Should You Buy, Hold, or Sell?

• Buy: If you’re a long-term investor, PNB’s undervaluation, improving asset quality, and dividend yield make it attractive. Wait for a dip to ₹88-₹90 for better entry.
• Hold: If you already own PNB, hold for potential recovery, but monitor NIM and loan growth in FY26.
• Sell: If you’re a short-term trader, consider selling unless the stock breaks above ₹102, as technicals suggest downside risk.

Conclusion: PNB Share Price

PNB’s Q4 FY25 results showcase a robust recovery, with a 52% profit surge and improved asset quality. However, short-term challenges like margin pressure and technical weakness warrant caution. For long-term investors, PNB’s low P/E, decent dividend, and growth initiatives make it a compelling pick, especially near support levels. Short-term traders should wait for a breakout above ₹102. Always consult a certified financial advisor before investing.

Disclaimer: The views expressed are based on publicly available data and analyst opinions. Investing in stocks carries risks, and past performance is not indicative of future results.

FAQs: PNB Share Price

• What was PNB’s Q4 FY25 net profit? ₹4,567 crore, up 51.7% YoY.
• What is PNB’s current share price? ₹94.25 as of May 7, 2025.
• Is PNB paying a dividend? Yes, ₹2.90 per share, subject to shareholder approval.
• Should I buy PNB stock now? Long-term investors may consider buying on dips, but short-term traders should wait for a breakout above ₹102.

Poll: Will PNB stock rebound above ₹100 by June 2025?

• Yes
• No
  Vote now and share your thoughts in the comments!

Stay tuned for more stock market updates!

Also Read: Will Trump’s Tariffs Force the Fed to Change Its Game Plan?