₹91 to ₹161: Ventura sees PNB share price rising over 70% in 18 months

The brokerage firm Ventura anticipates that Punjab National Bank (PNB) share price will increase by more than 70% over the next 18 months. They have begun coverage with a BUY recommendation and set a price target of ₹161. The firm expects the asset quality to stay robust, with a gross non-performing asset (GNPA) ratio of 3.0% and a net non-performing asset (NNPA) ratio of 0.3%, supported by careful underwriting and recovery strategies, while the provision coverage ratio (PCR) is projected to hover around 90%.

According to the brokerage, the return on assets (ROA) is expected to stabilize at 0.9% (+40 bps), and the return on equity (ROE) is predicted to grow to 12.3% (+430 bps). The Tier I capital adequacy ratio (CAR) of 14.6% is considered adequate to facilitate balance sheet expansion.

PNB is a bank with a wide range of lending options and additionally functions through its subsidiaries, such as PNB Cards & Services Ltd, PNB Investment Services Ltd, and PNB Housing Finance Ltd, which offer solutions in asset management, insurance, and housing finance respectively.

During the fiscal years 2024 to 2027, PNB's net advances are expected to increase from ₹934,413 crore to ₹1,439,205 crore, reflecting a compound annual growth rate (CAGR) of 15.5%. Meanwhile, deposits are anticipated to grow from ₹1,369,713 crore to ₹1,944,872 crore, with a CAGR of 12.4%, largely driven by CASA mobilization, which is projected to stabilize at 37% by FY27E, according to the report.

Net Interest Income (NII) is forecasted to rise from ₹40,083 crore to ₹54,223 crore, showing a CAGR of 10.6%, with Net Interest Margin (NIM) expected to increase to approximately 2.6%. Additionally, Pre-Provisioning Operating Profit (PPOP) is projected to climb from ₹24,931 crore to ₹33,236 crore, with a CAGR of 10.1%, though there will be a slight decline in the PPOP margin to 19.6%, a drop of 110 basis points.

PNB share price today

PNB share price today opened at ₹91.46 apiece, the stock touched an intraday high of 93.22 per share and an intraday low of ₹91.02 per share.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities stated that after an 11-month, 39.49% correction, PNB share price is setting up for a dead cat bounce, provided it sustains above the 50-day EMA at 95.

“A breakout above this level could trigger fresh buying, pushing the stock toward the swing high of 101. However, the broader structure remains weak, suggesting that any rally is likely to be short-lived. Traders should watch for rejection near resistance levels, as downside continuation is expected once the bounce fades,” said Jain.

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