The Punjab National Bank (PNB) stock has been on an upward trajectory since June 2023, marking a significant turnaround. It hit a low point at approximately ₹30 per share on the NSE but has since surged by an impressive 165% over the past 15 months. However, it’s worth noting that this state-owned bank appears to have more room for growth. Today, the PNB share price opened on an upward trend, reaching a new 52-week high at ₹81.35 per share on the NSE, signifying a remarkable 40% year-to-date increase.

 

Over the past month alone, the PNB share price has climbed from ₹62.50 to ₹81.35 per share, delivering nearly a 30% return to long-term investors. Looking back six months, the stock has shown remarkable strength, surging from ₹45 to ₹81.35 per share, representing an impressive 75% increase during this period. 

 

Exploring the Factors Driving PNB’s Impressive Growth

 

Based on the Indian economy news, over the course of the last year, PNB shares have emerged as standout performers in the Indian stock market. The share price has surged from around ₹36 per share to ₹81.35, marking a substantial 125% increase during this time.

 

Sandeep Pandey, Director at Basav Capital, sheds light on the reasons behind this meteoric rise in PNB share price, stating, “State-owned banks are reaping the benefits of the Government of India’s (GoI) initiative to address bad loans. This initiative has provided a lifeline to Indian PSU banks, relieving them of the burden of non-performing assets and enabling them to compete with private lenders, armed with ample liquidity for lending. Additionally, the merger of various PSU banks, including PNB, has bolstered their Current Account and Savings Account (CASA) figures.”

 

Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, expects further upside in PNB share price, asserting, “PNB’s share price is firmly in an uptrend, having recently broken out at the ₹62-63 per share range. It is anticipated that the stock will revisit its pre-Covid levels, ranging between ₹95 and ₹97 per share in the near term. Long-term investors are encouraged to maintain their positions, even on market dips, as long as the stock remains above ₹65 per share. Upon a sustained breakout above ₹97, the stock could reach triple digits, possibly touching ₹120 per share in the medium term,” according to business newspapers in India.