PNB share price falls over 3% post Q2 business update; should you buy the stock?

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₹80.70 against the previous close of ₹79.75 and touched the intraday high and low of ₹81.05 and ₹77.20 on NSE in trade so far. Around 10:25 am, PNB share price traded 3.07 per cent lower at ₹77.30 on NSE. PNB share price has clocked a robust gain in the last one year, strongly outperforming the Nifty PSU Bank index, Nifty Bank index and the benchmark Nifty 50.

Data show that in the last year, PNB share price has surged over 113 per cent while the Nifty PSU Bank index has gained about 74 per cent. Nifty Bank and Nifty 50 both gained about 13 per cent in the same period. PNB share price hit its 52-week high of ₹83.50 on October 3 on NSE.

The stock hit its 52-week low of ₹35.45 on October 13 last year. (Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) In a BSE filing on Wednesday, October 4, Punjab National Bank said its domestic advances rose 13.9 per cent year-on-year (YoY) to ₹9,07,937 crore in Q2FY24.

Global gross advances rose 13.8 per cent YoY. Total business rose 11.3 per cent YoY. Domestic deposits rose to ₹12,75,995 crore, up 9.3 per cent YoY while CASA deposits rose 2.6 per cent YoY.

The credit-deposit ratio rose 262 bps YoY to 72.18 per cent, the bank said. Brokerage firm Motilal Oswal Financial Services has a buy call on the stock as it underscored the bank's steady business growth and quarter-on-quarter improvement in the CASA ratio. However, according to media reports, global brokerage firm Morgan Stanley has maintained its underweight view on the stock with a target price of ₹55.