If you want to invest in PNB share or going to hold for the long term then it is very important for you to know about the PNB share price target.
In this article, we will give you the PNB share price target 2022, 2023, 2025, 2024, and 2030 based on the company’s past stock analysis, present and future investments, and technical analysis.
From this PNB share price target article, you will get all the information which you will be able to decide whether you should buy PNB shares or not.
PNB: Company profile
Punjab National Bank (PNB) is India’s first Swadeshi Bank, commenced its operations on April 12, 1895, from Lahore, with an authorized capital of Rs 2 lakh and working capital of Rs 20,000. The bank was established by the spirit of nationalism and was the first bank purely managed by Indians with Indian capital. During the long history of the bank, 9 banks have been merged/amalgamated with PNB.
amalgamation, PNB has expanded its presence across India. As of the end of Sep 2021, PNB has a total of 36,514 delivery channels with a network of 10,528 domestic branches, 2 international branches, 13,506 ATMs, and 12,478 business correspondents. PNB is the second largest public sector bank in the country with global gross business at Rs 18,51,097 crore.
PNB Share Price Target 2022, 2023, 2024, 2025, and 2030 Table
Year-wise PNB stock price, you can get an idea from this PNB share price target long-term table.
|Target Years||PNB Share Price|
|2022 (Target-1)||Rs 52|
|2022 (Target-2)||Rs 59|
|2023 (Target-1)||Rs 68|
|2023 (Target-2)||Rs 71|
|2024 (Target-1)||Rs 81|
|2024 (Target-2)||Rs 85|
|2025 (Target-1)||Rs 97|
|2025 (Target-2)||Rs 102|
|2030 (Target-1)||Rs 315|
|2030 (Target-2)||Rs 354|
PNB Share Price Target 2022
HDFC Securities has a buy call on PNB with a target price of Rs.65 in a bull case scenario. The time given by HDFC securities is 6 months when PNB can reach the given target.
Punjab National Bank (PNB) has a vast history of banking experience & resilience and post of the merger is has become systematically important 2nd largest public sector bank in the country. Over the years the bank has been scaling up its market position to emerge as a major financial conglomerate.
PNB has reported weak performance compared to other peers in Q4FY21. However, continuous CASA improvement is noteworthy. HDFC Securities expects PNB to grow its loan book at 8.7% CAGR while NII and net profit are expected to grow at 8.4% and 108.3%. CAGR respectively over FY21-23E. ROA is estimated to improve a bit to 0.62% in FY23E from the current 0.19% in FY21. Expect healthy recoveries and upgrades in the next two years.
HFDC Securities believes that investors can buy PNB at LTP (0.58xFY23E ABV) and add more at Rs36.5 (0.5xFY23E ABV) for the base case fair value of Rs.54.8 (0.75xFY23E ABV) and for bull case fair value of Rs 65 (0.9xFY23E ABV) over the next two quarters. PNB is a high-risk high-reward stock. HDFC securities assigned ”high-risk” rating.
Positives for PNB
PNB hopes to make a good recovery of its exposure in crisis-hit DHFL by H1FY22, which has recently completed its resolution process. Also, it has made a recovery of Rs 3,017 Cr from Bhushan Power and Steel under debt resolution in NCLT.
The stake of FPIs has increased to 4.97% from 2.94%. while that of insurance companies has risen from 8.08% to 8.79%.
Continuous CASA Improvement
PNB Share Price Target 2022
Ventura has a buy call on PNB with a target price of Rs 54. The time period given by Ventura is one year when PNB can reach the given target.
Ventura report of PNB
After major restructuring along with the recently concluded aggressive write-down of NPLs and stressed assets has put the bank into a new phase of growth. while the loan book is expected to grow by 2.5% YoY in FY21 to Rs 7.5 lakh Cr, Venture expects that the advances will grow at a CAGR of 7.7% to Rs 8.7 lakh Cr by FY23. This growth is fuelled by the faster growth of its Retail, Agri, and MSME portfolio. Whose contribution is expected to improve by 1060bps to 60% by FY23.
PNB share price target 2022 by Ventura
At the current market price of Rs 38, the stock is valued at 0.7x its FY23 Adj. BV of Rs 60. Given the resumption of the growth trajectory and its wide scale of operations, Ventura expects a moderate rerating in the valuations and initiates coverage with a buy for a price target of Rs 54 (0.9x FY23 Adj. P/BV), representing an upside of 29% from the CMP.
PNB Share Price Target 2022
LKP Securities has a buy call on PNB with a target price of Rs 50. The Time period given by LKP Securities is one year when PNB can reach the given target.
LKP Securities report on PNB
Reported GNPA ratio improved to 14.1% from pro format 14.7% in Q3FY21 and PNB plans to transfer bad loans of Rs 80 billion to NARCL ( bad ban ). These loans are 100% provided and management believes it may be transferred at 25%. NARCL will make payments using a combination of cash and security receipts. This may aid PNB’s equity capital position in the interim.
PNB has restructured Rs 26 billion in FY21, while another Rs 70 billion could be in the pipeline, mainly from corporates. Specific PCR stands flat at 63%. The management expects recovery from DHFL in H1FY22, with an additional cash recovery of Rs 11 billion in NCLT to partly offset any increase in NPAs.
Outlook and Valuation
Factoring near terms stress from restructures book, LKP Securities expects the bank’s loan book to fatten cautiously at a CAGR of 10% over FY21-24E, led by retail book growth. In our opinion, the bank’s credit cost will normalize by FY23E and estimate return ratio ROA/ROE of 0.2% and 3% in FY23E. Valuing the standalone equity at 0.5xFY23E BVPS and value of associated and subsidiaries at Rs 5 to arrive at a target price of Rs 50. LKP Securities recommend a buy on PNB with a potential upside of 20%.
|Financials (Rs mn)||FY21||FY22E||FY23E||FY24E|
PNB Share Price Target 2022
Motilal Oswal has a neutral call on PNB with a tragte price of Rs.45. The time period given by the analyst is one year when Punjab National Bank price can reach the given target.
Motilal Oswal Report on PNB
For the quarter ended 30-06-2021, PNB has reported a consolidated total income of Rs 22,815 Cr, up 16% from last quarter’s total income of Rs 22,779 Cr and down -7.73% from last year same quarter total income of Rs 24,727 Cr. The company reported a net profit after tax of Rs 1,168 Cr in the last quarter. It estimates a ROA/ROE of 0.6%/8.8% by FY23E.
PNB Share Price Target 2022
Morgan Stanley has a buy call on PBN with a target price of Rs 48. The time period given by the brokerage is one year when PNB can reach the given target.
Morgan Stanley Report on PNB
- Seen strong improvement in its balance sheet over the last few quarters.
- Coverage on impaired loans has gone up.
- Asset quality challenges remain given weak underwriting and elevated share of MSME ans BBB-and below corporate portfolio.
- PPoP margins will improve gradually, helped by lower slippages and lower opex.
- Normalization of credit costs will not happen before FY23.
- Lower book value per share estimates by 9%, 8%, 8% for FY21, FY22, and FY23, respectively.
PNB Share Price Target 2022
The brokerage has upgraded the stock to outperform from sell with a target price of Rs 47 per share. However, it said that given low ROE expectations from the lender, it prefers SBI, ICICI Bank, and Axis Bank in the space.
CLSA Report on PNB
- Turning corporate credit cycle will benefit the company.
- Will end the vicious cycle of losses/dilution seen over FY15-20.
- Given low ROE expectations, CLSA prefers SBI/ICICI/AXIS over PNB.
Strengths of Punjab National Bank
Strength helps a company to effectively achieve its goals and objects and assist them to make definite improvements. below listed are the Weaknesses of Punjab National Bank:
- Diversified Operations: Punjab National Bank has heterogeneous functional operations with 5100 branches. Due to their diversified operations, the bank is widely recognized and is approved with varied branches.
- Strong High-End IT Support: Due to its strong and well-established IT support, it gives the best services to its customers, making them the best-fit approach. The end-to-end IT support makes the bank more substantial with its services.
- Best Reliable Schemes: Punjab National Bank mainly focuses on providing the best reliable schemes for both small and medium scale businesses. Hence, these schemes promote the bank more efficaciously and make it prominently defined.
- Second-Largest Commercial Bank: It is the second-largest commercial bank in India with state-owned and about 5000 branches across 764 cities. Therefore, the popularity and recognition of Punjab National Bank are higher than any other commercial bank.
- Wide Range of Customers and Employees: It has more than 56,000 workforces and serves over 37 million customers and therefore, it is known to have a wide range of employees and customers.
Weaknesses of PNB
The internal factors of every company affect it drastically if it’s negatively. Thus, weaknesses play a neutral role where it pulls down a company’s reputation but in the same way, it also helps to accommodate changes to make and what practices should be withdrawn soon by the company. So, below listed are the Weaknesses of Punjab National Bank:
- Inadequate Advertising: Any brand requires an efficient amount of advertising and branding to lead in the market and meet its needs. The bank is so popular and diversified, but it fails to initiate proper advertising and branding compared to other banks. Thus, this makes the bank somewhere lag in terms of advertising.
- Poor Reputation: Legal issues regarding employees caused a bad name for the commercial bank. Thus, the bank lost its huge reputation and significance due to legal issues. Poor reputation should be converted to a healthy and rich reputation to enhance the bank and its past legal issues.
- Less Presence in Rural Areas: Punjab National Bank is not ubiquitous and has less presence in rural areas. Thus, because of their less presence in rural areas, it is not recognized in rural regions.
Opportunities for PNB
The most positive external factor of any company is opportunity. A company should always be opportunistic and should grab effective chances to elevate the company. Here are the Opportunities of Punjab National Bank.
- Small Scale Business: Punjab National Bank (PNB) should start with its small scale business across India to provide an end number of job opportunities to employees. This can also help them gain more popularity, make them ubiquitous across India, and receive increased profits.
- Expansion of the Company Across the Globe: The bank should expand its services internationally and not keep them limited to only India. International banking can again be another opportunity for the firm to gain profits and successive popularity across the globe.
- Installation of ATM’s: Installing more ATM’s can make the customers benefit through it and will have better feedback for the firm. It can be easier for people to accommodate and withdraw their money whenever and wherever required.
- Providing with Reliable and Better Customer Service: If the firm stays loyal and provides excellent customer service, it will attract more customers and receive superior feedbacks.
- Launching New Unique Schemes: Punjab National Bank can further launch new schemes for Saving Account Holders to expand its cash deposit ratio.
- Promotion Through Social Media Platforms: In the digital and social media trend, Punjab National Bank can promote its services through social media platforms and advertising platforms such as Google Ads and Facebook Ads because most customers prefer watching social media ads these days.
- Emphasizing Business Loans: The bank can accent business loans to appeal to more customers. As business loans can attract business-oriented customers for profit maximization of its business company.
- Originating E-Wallets: As it is the digital era, PNB can originate E-Wallets as it is trending throughout the world. Ahead in the future, e-wallets can make lives much easier and people are looking for such innovations to receive easy digital trends.
Threats to PNB
Threats can drastically bring down your company. It can be from the intrusion of other companies to other shortages and lags in the service. Below are the threats faced by Punjab National Bank –
- Fluctuations in the Economy: A major threat for the banking industry are fluctuations and crises in the economy and thus, the bank has to be cautious for the same. The shifts in the economy may make the bank suffer from unwanted delays and a decrease in demand.
- Stringent Regulations of the Government: The stringent regulations of RBI and the Government are also a major threat to the bank as they are interruptive and can make certain changes. Strict regulations can always bring the interruption in and led to disruptive unwanted changes in the formation.
- Competitor Threat: As the banking sector expands, new competitors will enter the market and they might get successful profits in the future. Not only this, the bank may have their old competitors shortly in the topmost lists and therefore, this can make the bank lose its ranking and might have a downfall. Hence, the bank should be prepared with both the consequences of profit and loss shortly to generate strategic pre-planning.
PNB Share Price Target 2023
In view of the pandemic, Bank credit growth remained subdued on account of lack of demand. However, since November 2020, there were signs of credit revival alongside green shoots of recovery in economic activity. This was facilitated by favorable liquidity conditions and a gradual unlocking of the economy.
The Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) declined to 7.5 percent at the end of March 2021 from 8.4 percent in March 2020. However, with the lifting of the interim stay on asset classification standstill by the Hon’ble Supreme Court, asset quality will need to be closely monitored in the coming quarters.
On the positive side, Banks are better positioned in managing stress in balance sheets in view of higher capital buffers, improvement in recoveries, and a return to profitability. The capital to risk-weighted assets ratio (CRAR) of SCBs rose to 16.0 percent by end-March 2021 from 14.7 percent by end-March 2020. As per RBI, stress tests indicate that Indian banks have sufficient capital at the aggregate level even in a severe stress scenario. Considering all the above factors PNB share price target for 2023 is Rs 68, and the second share price target for PNB is Rs 71.
PNB Share Price Target 2024
In spite of a challenging year, the Bank reached the mark of Rs. 18,45,739 Crore in gross global business as of 31st March 2021 with Gross Global Advances at Rs. 7,39,407 Crore and Gross Global Deposit at Rs. 11,06,332 Crore. On account of muted credit demand, it was a strategic decision to go slow in deposits and shed around Rs 30,000 crore of bulk deposits during FY 21.
Bank’s low-cost franchise remained robust with the CASA share at 45.5 percent. Current and Savings Deposits (CASA) were at Rs. 4,92,782 Crore. As a result, the global cost of deposit was contained at 4.44 percent. PNB is moving in the right direction and building new strategies to regain its past glory, PNB share price target for 2024 is Rs 81, and the second share price target for PNB will be Rs 85
PNB Share Price Target 2025
For the FY 2020-21, Bank’s profitability parameters and ratios remained stable. Bank’s Operating Profit was at Rs. 22,980 Crore along with a Net Profit of Rs. 2022 Crore. Return on Assets and Return on equity stood at 0.15 percent and 3.88 percent respectively during FY 21. Tangible Book value per share also improved to Rs 53.07. Cost to income ratio also improved to 46.91 percent during FY 21.
The key productivity parameter, Business per employee increased to Rs 1885 lakh in March’21. Similarly, as an indication of improved efficiency, domestic and global Net Interest Margin (NIM) improved to 2.99 percent and 2.88 percent respectively in FY21. PNB is in a turnaround process and moving in the right direction and declaring decent results in every quarter, PNB share price target for 2025 is Rs 97, and the second share price target for PNB will be Rs 102.
PNB Share Price Target 2030
PNB was able to contain Gross NPA at the level of Rs. 1,04,423 Crore as of 31st March 2021. While the Gross NPA ratio stood at 14.12 percent, the Net NPA ratio was at 5.73 percent. Provision Coverage Ratio (PCR) remained at a level of 80.14 percent.
As asset quality improvement remains one of the top priorities, the Bank is making optimum use of technology towards improvement in this regard. An exclusive Vertical for recovery of NPA Accounts, as part of the Organizational restructuring, called SASTRA Vertical has been created for exclusive & focussed recovery operations. In order to support recovery efforts of field functionaries, a common recovery portal i.e. SASTRA Portal has been rolled out.
Further, for effective monitoring and follow-up of NPA Accounts, PNB Pride App, a Geo Tagging enabled App, was also rolled out. In addition, a Special OTS Scheme was launched during the year. Towards improving underwriting standards in credit, Bank has launched an IT-based solution for loan management christened as PNB LenS- the Lending Solution.
This system has been implemented for Retail, Agriculture, and MSME Loans (up to Rs. 25 Crore). The Corporate Module (Above Rs. 25 Crore) is being taken up in the next phase. Besides, end to end digital lending has also been enabled through pre-approved personal loans by using data analytics. By considering the all factors mentioned above and PNB management is trying very hard to regain its market position, the PNB share price target for 2030 is Rs 315, and the second share price target for PNB will be Rs 354.
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PNB Real-Time Chart
PNB Technical Analysis
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Frequently Asked Questions
Is it good to invest in PNB for long term?
Yes, you can invest in PNB for the long term, PNB is in a turnaround process, and the bank is performing well for the past few years and making big changes in its business strategy.
What is future of PNB share?
The banking sector has a lot of opportunities to grow in the future, in fact growing economy like India needs more and more banks, as being said PNB has a good future if its able to sustain in the market with its business strategies.