During Tuesday's trading session, PNB's shares, which are state-owned, reached a fresh 52-week high of Rs 81.35 per share on the National Stock Exchange (NSE). Over the span of just six months, PNB's shares have surged by nearly 80 percent, illustrating the strong and sustained momentum it has enjoyed on Dalal Street.
Analysts have attributed PNB's outstanding share price performance to a confluence of factors. The upswing in PNB's share price aligns with a recent surge in PSU Bank stocks, which analysts believe is a consequence of government initiatives aimed at significantly reducing the Non-Performing Asset (NPA) burden borne by such banks.
According to analysts quoted in a report on livemint.com, there is an expectation of further upside potential for PNB's share price, particularly in light of the stock's impressive 28 percent gain within just one month. Furthermore, the bank's first-quarter results for FY24 portray a positive trend, with PNB reporting a standalone net profit of Rs 1,255.4 crore during this period. This marks a substantial improvement compared to the Rs 308.4 crore reported in the corresponding period of the previous fiscal year.
Moreover, PNB's net interest income (NII) demonstrated strong growth, increasing by 26 percent to reach Rs 9,504.3 crore in Q1FY24, as opposed to the Rs 7,542.8 crore recorded in the preceding year. These results were in line with analysts' expectations and further contributed to the positive sentiment surrounding PNB's shares.
