PNB Share Price Rises After Q1FY27 Beat: Asset Quality, Growth Outlook, And Analyst Upgrades

Nidhi Thakur

July 20, 2026

Key Takeaways

PNB posted a 214% YoY jump in Q1FY27 net profit to Rs 5,253 crore, lifting the pnb share price.
NII grew 2% YoY to Rs 10,798 crore and NIM expanded 6 bps QoQ, signaling improved margins.
Asset quality improved with GNPA at 2.78% and NNPA at 0.26%, while GNPA absolute declined to Rs 35,381 crore.
Analysts boosted the stock, with JM Financial targeting Rs 120 and Motilal Oswal targeting Rs 135, implying upside potential.

The pnb share price moved sharply as Q1FY27 net profit jumped 214% YoY to Rs 5,253 crore, sending the stock up nearly 6% to Rs 111.68, the highest level seen since early May. Net interest income (NII) rose 2% YoY to Rs 10,798 crore, while CASA deposits stood at Rs 5.69 lakh crore, up 8% YoY. Total term deposits rose to Rs 10.21 lakh crore, up 9% YoY, and global advances climbed about 13% YoY to Rs 12.73 lakh crore. RoA was 1.04% in Q1 FY27, from 0.37% in Q1 FY26, though it eased from 1.06% in Q4 FY26. ROE stood at 17.33% in the quarter.

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PNB Share Price Reaction After Q1FY27 Beat

The pnb share price reflected the profit beat with a near-6% intraday gain and a price of Rs 111.68 per share, a level not seen since early May. The strong earnings print suggests a re-rating of the bank’s earnings quality, supported by an NII of Rs 10,798 crore and a loan book growth signal implied by deposits and advances numbers.

Detailed Metrics Behind The Profit Beat: NII, NIM, And Deposits

Net interest income rose 2% YoY to Rs 10,798 crore, with NIM expanding by 6 basis points QoQ. CASA deposits rose to Rs 5.69 lakh crore, up 8% YoY, while total term deposits climbed to Rs 10.21 lakh crore, up 9% YoY. Global advances stood at Rs 12.73 lakh crore, up around 13% YoY, highlighting continued lending momentum despite balance-sheet re-pricing.

Asset Quality Trajectory And Slippages: GNPA, NNPA, And Coverage

Asset quality trends remained healthy, with GNPA at 2.78% at the end of the June quarter, down from 3.78% a year ago. The GNPA absolute declined by Rs 7,292 crore to Rs 35,381 crore from Rs 42,673 crore. NNPA stood at Rs 3,433 crore, down Rs 699 crore from Rs 4,132 crore as on June 2025, and the NNPA ratio was 0.26% versus 0.38% a year ago. RoA and RoE metrics show improvement but remain sensitive to asset quality cycles.

Analyst Upgrades And Price Targets For PNB Share Price

JM Financial upgraded its rating on PNB shares to Add from Reduce, with a target price of Rs 120 apiece, implying more than 9% upside potential. JM Financial noted PAT rising 214% YoY, beating its estimate by 17%. Motilal Oswal Financial Services also covered PNB, citing earnings beat led by controlled provisions and opex, with margins improving 3 bps QoQ. MO reiterated a Buy call with a target price of Rs 135, implying about 28% upside potential.

What Retail Investors Should Do Next With PNB Share Price

With strong profitability and improving asset quality, retail investors might consider a measured exposure to PNB, tracking FY27 loan growth guidance of 12-13% and macro factors that influence funding costs. Investors should maintain discipline, diversify across sectors, and use tools like Swastika's Sarthi AI stock assistant to run scenarios and calibrate risk before taking new positions.

Frequently Asked Questions

What was PNB's Q1FY27 net profit and its YoY growth?

PNB's Q1FY27 net profit stood at Rs 5,253 crore, up 214% year-on-year.

How did the PNB share price move after the Q1FY27 results?

The stock rose nearly 6% to Rs 111.68 per share, the highest level seen since early May.

What were the Q1FY27 NII and NIM figures for PNB?

Net interest income (NII) was Rs 10,798 crore, up 2% YoY, and NIM expanded by 6 basis points QoQ.

How has PNB's asset quality evolved in Q1FY27?

GNPA stood at 2.78% at the end of the June quarter (down from 3.78% a year ago); NNPA was Rs 3,433 crore (down from Rs 4,132 crore), with NNPA ratio at 0.26% (vs 0.38% YoY). GNPA absolute declined to Rs 35,381 crore from Rs 42,673 crore.

Which analysts upgraded PNB and what targets were set?

JM Financial upgraded PNB to Add with a target price of Rs 120, implying upside of over 9%. Motilal Oswal reiterated a Buy with a target price of Rs 135, implying about 28% upside.

What is the FY27 loan growth outlook for PNB?

Management guided for loan growth of nearly 12-13% in FY27.

Conclusion

PNB's Q1FY27 beat signals a positive shift in earnings quality and asset quality, supported by healthier deposit growth and a 12-13% loan growth outlook for FY27. The pnb share price rally reflects the market's optimism about the bank's ability to sustain growth while reducing stressed assets, but investors should stay disciplined and monitor quarterly updates for any changes in guidance or macro conditions.

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Reference :

1 : Economictimes

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