Punjab National Bank (PNB) has emerged as a standout performer among PSU banking equities, demonstrating outstanding stability and performance throughout the current year. In today's trading, the stock gained 2.33%, reaching a four-and-a-half-year high of 92 per share.
PNB has witnessed a tremendous rise year to date, rising from 56.80 per share to the current market price of 90.50, representing a 59.33% increase. This exceptional performance propelled the bank's market value past the one lakh crore mark in today's trade, making it the third public sector bank to accomplish this monumental feat. PNB's market capitalization hit 1,01,292 crore at its peak price of 92.
The stock has gained ground in four of the last five months. The best months were September, with a 27.03% gain, and July and November, with 19.75% and 6.30% returns, respectively.
The bank reported a 20% YoY and 4.4% QoQ increase in net interest income (NII) at 9,923 crore for the September ending quarter (Q2FY24), while the net interest margin (domestic) was 3.24%, compared to 3.11% in Q2FY23 and 3.21% in Q1FY24. The bank's pre-provision operating profit (PPOP) was 6,216 crore for the quarter ended September 30, 2023, up 11.67% from the previous year's equivalent quarter of 5,567 crore.
Provisions fell 29.8% year on year to 3,444 crore. The decrease in provisions and improvement in operating profit growth enabled the bank to report a net profit of 1,756 crore in Q2 FY24, the highest in 14 quarters and a 327% year-on-year increase. The bank made a net profit of 411 crore during the same time previous year. Meanwhile, on June 19, another PSU Bank, Bank of Baroda, joined the one lakh market capitalization club when its share value reached 193.15 per share.
