PNB Q1FY25 results today. Experts see healthy numbers on growing deposits

Q1 results today: The board of directors of Punjab National Bank (PNB) is meeting today to consider and approve unaudited standalone Q1 results 2024. The state-owned bank has informed the Indian stock market exchanges about the PNB results date. According to stock market experts, PNB is expected to report a healthy set of numbers in the April to June 2024 quarter. They said that despite compression in the banking segment's NIMs, PNB is expected to report strong deposit-related numbers.

PNB Q1 results 2024 preview

Expecting healthy PNB's Q1 results today, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "The state-owned bank has delivered strong business update, but pressure on the NIMs in the banking industry was visible. However, the PSU bank has registered growth in deposits, and hence, its net profit is expected to grow QoQ and YoY during the April to June 2024 quarter."

Speaking on PNB's Q1FY25 results, Manish Chowdhury, Head of Research at StoxBox, said, “PNB showcased strong business growth in Q1FY25. Its deposits grew 2.7% QoQ and 8.1% YoY. Meanwhile, its advances grew 5% QoQ and 12.1% YoY. This gives us confidence that the public sector bank is poised to deliver a healthy set of numbers in Q1FY25. Due to the NIM compression faced by the industry, the bank may face some compression in this quarter. However, we do not see much compression for the bank due to its large share in the RAM portfolio. Amidst the concern seen by banks in growing deposits, PNB does not see any challenge in deposit mobilisation and is sufficient to support the advances growth.”

"We expect the bank's profit to remain healthy as the fee income tends to be higher in Q1FY25 due to the bank charging processing fees to the customers. With the continued traction in recoveries, lower slippages and falling requirement for ageing provisions, we believe the credit cost will remain below 1%. Thus, we expect the bank to report a healthy set of numbers this quarter," the StoxBox expert said.

PNB share price outlook

Unveiling investment strategy regarding PNB share price, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, "For existing shareholders, it is advisable to maintain a stop loss at ₹96 to mitigate potential losses. For new investors, accumulating PNB shares in the ₹103 to ₹107 range could be a strategic move, given the immediate resistance levels at ₹120 to ₹125. It is prudent to wait for a proper reversal action before making substantial commitments, ensuring that the stock has indeed found a stable bottom and is poised for recovery."

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.