PNB Stock Sees 3x Q3 Profit Surge and Rising FII's Interest: Is Now the Time to Invest?

The Punjab National Bank (PNB) has recently reported a remarkable threefold increase in Q3 profits, coupled with a surge in Foreign Institutional Investments (FIIs). The stock's performance, evident in the daily chart, showcases a robust uptrend, making it a compelling consideration for investors. But the question remains: Is this surge sustainable, and should one contemplate investing in PNB shares?

Q3 FY 2023-24 Results

In the Q3 FY 2023-24 report released on January 25, PNB declared a net profit of Rs 2,222.8 crore, marking a substantial 253.49% YoY increase. Key financial indicators underscore the bank's robust performance:

• Gross NPA reduced from 9.76% to 6.24% YoY.
• Net NPA improved from 3.30% to 0.96% YoY.
• Net Interest Income (NII) rose by 12.13% YoY to Rs 10,293 crore.
• Operating profit reached Rs 6,331 crore, reflecting a 10.75% YoY growth.
• Credit cost improved by 61 bps to 1.26% in Q3 FY’24.
• Provision coverage ratio (PCR) surged by 911 bps to 94.28%.
• Slippage ratio improved by 136 bps to 0.81%.
• Global business grew by 10.82% YoY to Rs 22,90,742 Crore.
• CASA deposit increased by 6.0% YoY to Rs 5,47,516 Crore.

Company Key Metrics

Daily Chart Overview

Examining the daily chart reveals a consistent upward trend, marked by higher highs and higher lows.

In the past six months, PNB's share price has catapulted from Rs 50.20 in June 2023 to a closing high of Rs 104.50 on January 25, 2024, delivering an impressive 110% return. Notably, the stock has breached the psychological barrier of Rs 100, historically a crucial level. Sustaining this position, particularly with increasing volumes, enhances the likelihood of continued upward momentum.

Is it the Right Time to Invest?

While the current conditions seem promising, it is crucial for investors to approach with caution. Market dynamics can change, and external factors may influence stock performance. Before making any investment decisions, it is advisable to consult with a financial advisor who can provide personalized guidance based on individual risk tolerance and financial goals.

Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)

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