Punjab National Bank reported a mixed of March quarter results, with profit exceeding analyst estimates, but net interest income (NII) and pre-provision operating profit (PPOP) falling short of expectations. Sticky deposit rates led to sequential net interest margin (NIM) decline. Analyst targets on the PSU bank in the Rs 114-135 range suggest up to 25 per cent potential upside. At 9.17 am, the scrip was quoting at Rs 110.75 on BSE, up 2.64 per cent.

Nirmal Bang Institutional Equities said PNB's Q4 profit after tax grew 14.4 per cent YoY due to a pick-up in credit growth and lower provisions. It said loan growth was in double digits at 12.7 per cent YoY, but deposit growth stood lower at 9.2 per cent YoY. This was below the system deposit growth of 10.8 per cent YoY during the same period. NIM declined 5bps QoQ to 2.47 per cent. Asset quality improved with gross non performing assets declining 24bps QoQ to 2.95 per cent.

"We have valued PNB at 0.8 times March 2028E ABV and derived a target price of Rs 114 as against Rs 115 earlier. Our target multiple is at an 8 per cent premium to the past 5-year average multiple of 0.74 times," Nirmal Bang said.

Elara said NIM came in below its estimates, which fed into lower NII at sequentially. Core fee was soft, with lower treasury dragging revenue traction, it said adding that slippages inched up to nearly 1 per cent.

"PNB delivered softer Q4FY26, and the overall trends have been volatile. The investment argument thus relies on recovery potential than on core delivery, which we still believe has some catch-up to do. We prune our EPS by 2-3 per cent for FY27E. Also, after factoring in the uncertainty, we cut our target multiple to 0.9 times FY28E P/B, leading to a lower target price of  Rs 125 from Rs 135," Elara said. 

This brokerage retained its 'Accumulate' rating on the stock.

MOFSL said PNB reported a mixed quarter, with earnings beat led by controlled provisions and opex. 
It said provisions came in lower, aided by a reversal of standard provisions, while opex was lower due to a reversal in AS-15-related expenses. 

"Business growth remained modest, and management guided for loan growth of 12-13 per cent in FY27. Asset quality trends were healthy, although slippages saw a marginal uptick on account of seasonality. The bank guided for RoA of over 1 per cent for FY27, while credit cost is guided at less than 0.4 per cent," it said.

This brokerage retained its 'Buy' on the stock with a target price of Rs 135.