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'Buy' Punjab National Bank Maintains Motilal Oswal On Re-Rating Potential — Check Target Price
At current valuations, PNB trades at a discount to both private peers and select PSBs, offering a margin of safety, says Motilal Oswal.
19 Sep 2025, 10:23 AM IST 
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Punjab National Bank's near-term profitability is weighed down by elevated opex and one-offs, but structural earnings drivers remain intact. (Photo source: Usha Kunji/NDTV Profit)
PNB expects NIM to bottom out in Q2 FY26, with recovery visible from Q3 onward and sharper improvement in Q4. Global NIM stood at 2.70% in Q1, with management guiding to sustain ~2.7% in Q2 before a sequential uptick to 2.8–2.9% in Q3 and >2.9% in Q4. A key driver is the sharp reduction in CDs, which have fallen to ~Rs 400 billion currently from Rs 900 billion in Dec-24.
