1. At a Glance
Once the headline king for all the wrong reasons, PNB is now quietly (and profitably) reclaiming lost ground. With a ₹1.3 lakh Cr market cap, a 15.2% ROE, and a sub-8x P/E, it’s your desi PSU phoenix moment—complete with quarterly plot twists.
2. Introduction with Hook
If Indian banking were Bollywood, SBI is Amitabh, HDFC is SRK, and PNB? It’s that gritty character actor who went through a scandal, jail time, an image makeover—and now walks into every scene with swag and a clean balance sheet.
- Net profit up 103% YoY
- ₹5,011 Cr PAT in Q4 FY25
- Dividend yield: 2.55%
- Trades at 0.98x Book Value (Bargain-bin alert)
3. Business Model (WTF Do They Even Do?)
Full-service public sector bank with strong reach across India.
Core Biz:
- Corporate and Retail Lending
- Deposits, CASA, and Treasury Operations
- MSME & Agri Loans
- Digital Banking (PNB ONE app)
Reach:
- 10,000+ branches
- Deep rural & semi-urban footprint
- Especially dominant in North & Central India
PSU stamp, but now fighting like a private bank with something to prove.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹1.24 L Cr | ₹1.09 L Cr | ₹86,845 Cr |
| Net Profit | ₹18,553 Cr | ₹9,157 Cr | ₹3,359 Cr |
| ROE | 15.2% | 9% | 3% |
| EPS | ₹16.08 | ₹8.27 | ₹3.04 |
| Dividend Payout | 18% | 18% | 21% |
Verdict:
From loss-making in FY18–20 to 103% YoY profit growth? This isn’t a bank. It’s a redemption arc.
5. Valuation
- CMP: ₹114
- P/E: 7.08
- P/B: 0.98
- Dividend Yield: 2.55%
Valuation Take:
- P/E-based FV = 10x EPS = ₹160
- P/B re-rating to 1.3x = ₹150
- DDM (5-year payout): FV = ₹140–₹165
EduFair Value Range: ₹140–₹165
Cheap? Yes. Risk-free? LOL, no.
6. What’s Cooking – News, Triggers, Drama
- Profit Surge: ₹5,011 Cr Q4 PAT—up 49% YoY
- MCLR & RLLR tweaks (July ’25): Borrowing rate adjustment = margin mind games
- FII Love: FII holding up from 1.2% in ’22 to 5.5% now
- ARCL Waiver: No more penalty on PNB Gilts = brownie points
- Strikes & Union Drama: Welcome to PSU banking 101
7. Balance Sheet
| Item | FY25 | FY24 | FY23 |
|---|---|---|---|
| Equity Capital | ₹2,299 Cr | ₹2,202 Cr | ₹2,202 Cr |
| Reserves | ₹1.31 L Cr | ₹1.08 L Cr | ₹1.00 L Cr |
| Deposits | ₹15.8 L Cr | ₹13.8 L Cr | ₹12.9 L Cr |
| Borrowings | ₹1.06 L Cr | ₹72,586 Cr | ₹70,149 Cr |
Assets:
- Investments: ₹5.25 L Cr
- Gross Advances: Up double digits
- NPAs: Declining trend = applause
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY25 | ₹22,075 Cr | -₹1,578 Cr | -₹1,138 Cr | ₹19,359 Cr |
| FY24 | -₹27,939 Cr | -₹1,506 Cr | ₹3,518 Cr | -₹25,928 Cr |
| FY23 | ₹22,592 Cr | -₹732 Cr | ₹1,275 Cr | ₹23,135 Cr |
Takeaway:
Cash flows swing like Salman’s mood—but FY25 shows healthy operational cash, low financing strain.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 | FY23 |
|---|---|---|---|
| ROE | 15.2% | 9% | 3% |
| ROA | 1.07% | 0.91% | 0.26% |
| Net NPA | ~0.75% (est.) | ~0.9% | 1.6% |
| Interest Coverage | Weak | Weak | Moderate |
| CASA Ratio | ~41% | ~42% | ~44% |
Conclusion:
Ratios are improving, but PSU inertia still shows. Sexy on paper, stressy in regulation.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Interest | Net Profit | Financing Margin |
|---|---|---|---|---|
| FY25 | ₹1.24 L Cr | ₹80,704 Cr | ₹18,553 Cr | 5% |
| FY24 | ₹1.09 L Cr | ₹68,534 Cr | ₹9,157 Cr | 1% |
| FY23 | ₹86,845 Cr | ₹51,817 Cr | ₹3,359 Cr | -7% |
Narrative:
Rising income, margin flip from negative to positive, and double-digit net profits = PSU glow-up.
11. Peer Comparison
| Bank | CMP | P/E | ROE | PAT | Book Value | P/B |
|---|---|---|---|---|---|---|
| PNB | ₹114 | 7.1 | 15.2% | ₹18,553 Cr | ₹116 | 0.98x |
| BoB | ₹246 | 6.2 | 15.5% | ₹20,677 Cr | ₹284 | 0.87x |
| Union | ₹146 | 6.2 | 17% | ₹18,025 Cr | ₹149 | 0.98x |
| Canara | ₹115 | 6.0 | 17.7% | ₹17,537 Cr | ₹116 | 0.99x |
Verdict:
Valuation in line, but re-rating potential is intact given profit rebound.
12. Miscellaneous – Shareholding, Promoters
| Holder | % Holding |
|---|---|
| Promoters (GoI) | 70.08% |
| FIIs | 5.52% |
| DIIs | 15.07% |
| Public | 9.33% |
Notes:
- FII stake rising
- DII confidence returning
- Retail base stabilizing
From 73.15% to 70.08% promoter stake—Govt disinvestment mood on?
13. EduInvesting Verdict™
PNB is no longer the poster boy of banking frauds. It’s the comeback kid. While not squeaky clean, it’s efficient, profitable, and trading at a discount. Combine that with PSU dividends and strong provisioning, and you’ve got a value pick with tailwind.
Sure, it still smells a bit like babudom. But it walks like a private bank and pays like an FD. Nirav who?
Metadata
– Written by EduInvesting Analyst Team | 18 July 2025
– Tags: Punjab National Bank, PNB, PSU Bank, Turnaround Stocks, Nirav Modi, Public Sector Banking, Value Investing
