PNB reports 11% YoY growth in total business for Q2; stock gains 1%

Shares of Punjab National Bank (PNB) jumped nearly 1.6 percent on October 5 as the public sector bank announced a year-on-year (YoY) growth in total business, registering an 11.3 percent increase, reaching Rs 22.5 lakh crore for the second fiscal quarter in FY24.

Total deposits grew 9.7 percent YoY to Rs 13.08 lakh crore, of which domestic deposits were Rs 12.76 lakh crore, rising 9.3 percent year-on-year.

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CASA deposits increased 2.6 percent year-on-year, coming in at Rs 5.4 lakh crore, up from Rs 5.2 lakh crore in the corresponding quarter in FY23. Global gross advances stood at Rs 9.4 lakh crore, up 13.8 percent year-on-year, while domestic advances increased by 13.9 percent YoY to Rs 9.08 lakh crore.

As of 9.40 a.m., Punjab National Bank shares were trading at Rs 79.35, paring early gains to trade in the red, lower by 0.5 percent on the NSE.

Shareholding, stock performance and technical view

Compared to the Nifty’s one-year run at 12.5 percent, Punjab National Bank gained 117.6 percent in the same time period. Over the past six months, the stock soared 69.38 percent.

The counter’s RSI stands at 63.9, indicating that the stock is neither oversold nor overbought. However the stock faces high volatility in the trade, as suggested by the one-year beta of 1.52. The stock is also trading above all key moving averages expect its 5-day moving average.
According to the June quarter shareholding data, the promoters have maintained a 73.2 percent stake in the firm over quarters. FIIs held 1.8 percent in the firm, while DIIs owned 13.4 percent. The public had a 11.6 percent stake in the public lender.

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