PNB shares dip post Q4 profit jump, dividend announcement — is this the right time to buy? Here’s what top brokerages say

A day after announcing strong Q4 FY25 results and declaring a 145 per cent dividend, shares of Punjab National Bank (PNB) came under pressure on Thursday. The PSU bank's stock opened at Rs 95.80 on the BSE but slipped to an intraday low of Rs 93.40, despite a 52 per cent year-on-year jump in quarterly profit. The decline has triggered investor curiosity, is this a good entry point for PNB shares? Here's what top brokerages are recommending.

Profit soars, NII lags behind street view

PNB posted a 51.7 per cent YoY rise in net profit to Rs 4,567 crore for the March quarter, compared to Rs 3,010 crore in the same period last year. However, the net interest income (NII) came in at Rs 10,757 crore, up from Rs 10,363 crore YoY, missing some estimates due to a decline in net interest margins (NIM). NIM fell to 2.81 per cent from 3.10 per cent in Q4FY24 and 2.93 per cent in Q3FY25.

Slippages rise but asset quality improves

While slippages saw a spike especially from the MSME and agri segments the bank’s asset quality ratios improved, driven by better recoveries and write-offs. Analysts flagged higher provisions but noted that business growth remained solid, with deposits rising 14.4 per cent YoY and advances increasing by 13.6 per cent outperforming the industry average.

Brokerages divided: CLSA, Jefferies bullish; Citi cautious

Brokerage views were mixed. CLSA and Jefferies both assigned a target of Rs 120. CLSA maintained an ‘Accumulate’ rating, while Jefferies continued with a ‘Buy’ view. On the other hand, Citi maintained its ‘Sell’ stance, with a target of Rs 91, citing pressure on yields and slipping NIMs.

Valuation re-rating on the cards?

Motilal Oswal Financial Services (MOFSL) called the quarter “moderate”, noting NII weakness and higher provisions, but retained a ‘Buy’ call with a higher target of Rs 125. Nirmal Bang raised its target to Rs 102 from Rs 101 earlier, citing consistent growth in core metrics.

What to watch ahead

With the PSU lender projecting FY26 credit growth at 11-12 per cent and deposit growth at 9-10 per cent, investor focus will now shift to NIM stabilisation and slippage control.

PNB’s Q4 earnings reinforce its turnaround story, and with big brokerages raising targets, the stock is back on Dalal Street’s radar.