Why Punjab National Bank Shares Are Climbing Today
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Punjab National Bank (PNB) shares were gaining on Friday after the lender’s board approved a proposal to raise ₹7,500 crore through a qualified institutional placement (QIP) or follow-on public offering (FPO).

What Happened: The fundraising initiative is slated to occur in one or more tranches during the fiscal year 2024-25, the company said in an exchange filing. The board’s decision underscores the commitment to augmenting equity capital.

The stock surged over 68% throughout the year, reaching a 52-week high of ₹97 on December 28. It has been the top performer in the Nifty Bank index.

See Also: FirstCry Files DRHP With SEBI, Aims To Raise ₹1,816 Cr In Upcoming IPO

What Analysts Say: Sharekhan analysts anticipate that PNB’s robust asset quality and optimistic outlook will expedite the normalisation of credit costs, consequently enhancing the visibility for improved return ratios.

Sharekhan maintained a “buy” rating with a target price of ₹105 per share, emphasising PNB’s assertion regarding the superior quality of loans sanctioned and disbursed in the post-Covid period, resulting in minimal delinquency. This trend of lower slippages is expected to persist, the brokerage said, narrowing the perceived gap in underwriting compared to peers.

Price Action: PNB shares were up 0.99% at ₹96.45 near the start of trade on Friday.

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