PNB Share Price Declines As Morgan Stanley, Citi Remain Bearish Post Q1 Update
Morgan Stanley retained 'underweight' rating on the bank, while Citi Research has maintained a 'sell'.
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Shares of Punjab National Bank Ltd. fell over 2% on Thursday as the bank received bearish stance from brokerages after it announced its first quarter business update. Morgan Stanley retained 'underweight' rating on the bank, while Citi Research has maintained a 'sell'.
Morgan Stanley highlighted that as per Punjab National Bank's first quarter initial update, loan growth has decelerated and now is in line with the system. The brokerage noted that domestic loans or deposit growth is moderated compared to last quarter.
Citi expects bank's RAM segments to be the primary growth driver. "The bank's deposits growth stood at 12.8% year-on-year or 1.4% quarter-on-quarter vs 14.3% in FY25," as per business update.
Based on the management's guidance, Citi is building in approximately 2% quarter-on-quarter fall in NII and 12bps quarter-on-quarter fall in NIMs given higher EBLR book. Contained credit cost at approximately 20bps could help it register RoA of 0.9-1%.
PNB Share Price
Shares of PNB fell as much as 2.04% to Rs 111.53 apiece. They pared losses to trade 1.51% lower at Rs 112.13 apiece, as of 9:20 a.m. This compares to a 0.32% advance in the NSE Nifty 50.
The stock has fallen 7.77% in the last 12 months and risen 9.13% year-to-date. Total traded volume so far in the day stood at 3.29 times its 30-day average. The relative strength index was at 45.85.
Out of 20 analysts tracking the company, 10 maintain a 'buy' rating, four recommend a 'hold' and six suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 2.9%.
