Shares of Punjab National Bank (PNB) fell over 1% to ₹111 on July 3 after its Q1FY26 business update failed to meet analyst expectations. Despite a year-to-date gain of 8%, in line with Nifty 50’s 7% rise, the bank's latest performance left brokerages unconvinced. Citi downgraded the stock with a “sell” rating and set a target price of ₹101, signaling a 9% downside. Morgan Stanley maintained its “underweight” view, citing moderating growth trends.
PNB’s provisional update showed a 9.9% YoY rise in global advances to ₹11.3 lakh crore and a 13% YoY increase in global deposits to ₹15.9 lakh crore. Domestic deposits grew 12% YoY to ₹15.4 lakh crore. However, the global credit-deposit ratio remained flat at 71.2%, indicating no change in the bank’s lending efficiency.
Citi noted that the growth in gross advances and deposits underperformed estimates, and that the RAM (Retail, Agriculture, MSME) segments would be the key drivers going forward. Morgan Stanley emphasized that loan growth had slowed to align with broader banking trends, with both domestic loan and deposit expansion moderating compared to the previous quarter.
On July 3, shares of Punjab National Bank (PNB) declined by more than 1% to ₹111, following the release of its April–June quarter (Q1FY26) business update, which failed to impress leading brokerages. Citi downgraded the stock to a “sell” rating with a target of ₹101, suggesting a potential 9% downside. Morgan Stanley reiterated its “underweight” stance, expressing concern over slowing growth.
PNB’s provisional results indicated a 9.9% YoY rise in global advances to ₹11.3 lakh crore and a 13% YoY increase in global deposits to ₹15.9 lakh crore. Domestic deposits also rose by 12% to ₹15.4 lakh crore. Despite these figures, the credit-deposit ratio held steady at 71.2%, indicating no improvement in lending relative to deposits.
Analysts noted that gross advances grew just 1.3% QoQ—lower than Citi’s 2.1% expectation—while deposit growth marginally missed forecasts. Both firms cautioned that while the RAM segments may support future growth, current trends reflect moderation in core lending activity, in line with system-wide deceleration.
