Punjab National Bank (PNB) shares rose more than 7% during the trading session on Monday (July 29), after the public lender shared a good set of first-quarter results, with profit increasing 159% year on year due to a dramatic drop in provisions and healthy recoveries.
Morgan Stanley rated PNB as ‘Underweight’ but increased the target price to ₹80 per share. That suggests that the stock may fall by 33% from its most recent closing levels.
PNB’s net interest income (NII) climbed 10% year-on-year to ₹10,476 crore, meeting expectations due to average balance sheet expansion. Margins fell 3 basis points quarter on quarter to 3.07%.
With lower slippage and credit cost, the PSU bank’s asset quality trend was better than anticipated.
As of 10:49 am, Punjab National Bank shares were trading 7.14 % higher at Rs 128.52.
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