Financial Services · NSE/BSE: PNB

Punjab National Bank

Public Sector Bank
Market Cap ₹1.23L Cr
Verdict: Average

Quality Scores

Multi-Bagger
71/100
Compounder Quality
58/100
Management Credibility
72/100
Governance
65/100
Cash Flow Quality
48/100

AI Summary

Punjab National Bank (PNB) is India's second-largest Public Sector Bank, currently undergoing a multi-year balance sheet transformation following the significant asset quality crisis of FY18-FY19. The bank has demonstrated a sharp recovery in profitability, with Net Profit rising from Rs 485 Cr in FY20 to over Rs 18,000 Cr in recent projections. This turnaround is driven by a reduction in credit costs and the successful integration of Oriental Bank of Commerce and United Bank of India. While the bank maintains a strong systemic presence with a high CASA base and extensive branch network,…

Top Opportunities

  • Second largest Public Sector Bank in India
  • Stock trades at significant discount to Book Value (0.83x)
  • Strong historical profit CAGR of 48% over 5 years

Top Risks

  • Extremely high Contingent Liabilities (Rs 5.24 Lakh Cr)
  • Low interest coverage ratio compared to private peers
  • Historical vulnerability to large fraud/NPA events

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