This Public Sector Bank Stock Rises 195% in 5 Years: From Bad Loan Crisis to Record Profit
- September 11, 2026
- Posted by: Harsh Piplani
- Category: Best Stocks
CMP Rs 115.61 (10 Sep 2026 close). 5-year return 195.37%. 52W range Rs 98.50 to Rs 135.15. Market cap approx Rs 1,32,870 Cr. Q1 FY27 PAT Rs 5,253 Cr, GNPA 2.78%, ROA 1.04%.
Quick Answer
Punjab National Bank is the public sector bank stock that returned approximately 195% in five years, rising from about Rs 39 to around Rs 115.61. The rally came from a collapse in bad loans, with gross NPA falling from 14.12% to 2.78%, and a jump in profit to a record Rs 16,904 crore in FY26. The 1-year return is only 4.7% because of margin pressure, and verified brokerage targets range from Rs 115 to Rs 135.
This public sector bank stock has nearly tripled investor money in five years. A lender that was carrying a gross NPA ratio above 14% in 2021 delivered a 5-year return of 195.37% as of 10 September 2026, ranking 37th in a screen of 101 large-cap and mid-cap NSE shares.
The bank is Punjab National Bank (NSE: PNB), India’s second-largest state-owned lender, with the Government of India holding approximately 70.08%. The PNB share price closed at Rs 115.61 on 10 September 2026, compared with roughly Rs 39 five years ago, and market capitalisation stands near Rs 1,32,870 crore. This public sector bank stock has been a steady long-term compounder, but its recent 1-year run has been far more modest.
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How Much Has This Public Sector Bank Stock Returned?
This public sector bank stock has returned approximately 195.37% over five years, ranking 37th out of 101 screened NSE stocks. That means Rs 1 lakh invested in this public sector bank stock in September 2021 would be worth roughly Rs 2.95 lakh today, before dividends.
The shorter periods tell a different story for this public sector bank stock. The 1-year return is only 4.7%, ranking 86th out of 101, and the 6-month return of 12.86% ranks 78th. Most of the gain in this public sector bank stock was made between 2021 and 2024.
| Period | Return (%) | Rank (out of 101) |
|---|---|---|
| 1 Month | 3.55% | 55 |
| 6 Months | 12.86% | 78 |
| 1 Year | 4.70% | 86 |
| 3 Years | 47.13% | 70 |
| 5 Years | 195.37% | 37 |
Returns are simple price changes and are not annualised. PNB has not issued a bonus or split in the five-year window, so the 195% gain reflects real price appreciation on the same Rs 2 face value share. The bank did raise Rs 5,000 crore through a QIP in September 2024 at Rs 103.75 per share, which diluted existing holders but did not distort the price history.
The 52-week range is Rs 98.50 to Rs 135.15. At around Rs 115.61, the PNB share price sits about 17% above its 52-week low and roughly 14% below its 52-week high. In early trade on 11 September 2026, this public sector bank stock was quoted near Rs 116.85, up about 1%.
Why Did This Public Sector Bank Stock Rise 195% in 5 Years?
This public sector bank stock rose 195% because PNB cut its bad loans from crisis levels to near-normal levels, and its profit multiplied as provisions fell. A sector-wide re-rating of state-owned banks added to the move. The drivers played out in phases.
1. The Early Phase: A Deep Balance Sheet Clean-Up (2021 to 2023)
In March 2021, PNB’s gross NPA ratio was 14.12% and its net NPA ratio was 5.73%. The bank had just absorbed Oriental Bank of Commerce and United Bank of India, and investors priced this public sector bank stock for years of weak earnings.
Over the next two years, the bank recognised stressed loans, raised provisions and slowly improved recoveries. Gross NPA fell to 8.74% by March 2023. Profit was still thin at Rs 2,507 crore in FY23, but the direction of asset quality had clearly turned, which gave this public sector bank stock its first leg up.
2. The Profit Breakout (FY24 and FY25)
The big earnings jump came next. Net profit rose approximately 229% to Rs 8,245 crore in FY24 as gross NPA dropped to 5.73%. In FY25, profit at the bank roughly doubled again to Rs 16,630 crore, while gross NPA fell to 3.95% and net NPA to 0.40%.
This is the period when the PNB share price re-rated sharply. Lower credit costs meant that most of the operating profit started reaching the bottom line, and the market began valuing this public sector bank stock on earnings rather than on book value alone.
3. Stronger Capital and Institutional Demand
The September 2024 QIP drew bids of about Rs 41,734 crore against an issue size of Rs 5,000 crore, or 8.3 times. Mutual funds, insurers and foreign investors bought into this public sector bank stock, and the raise strengthened capital ratios. Capital adequacy has since climbed to 18.13% in June 2026, with CET-1 at 14.52%.
4. Recent Drivers: Record Profit and Near-Zero Net NPA
PNB posted a record net profit of Rs 16,904 crore in FY26. In the June 2026 quarter, profit jumped approximately 214% year on year to Rs 5,253 crore, largely because the year-ago quarter was hit by a one-time tax charge. Gross NPA improved to 2.78% and net NPA to just 0.28%, with the provision coverage ratio including write-offs at 97.23%.
This public sector bank stock gained about 6% in the sessions after the results, and it has climbed from around Rs 110 in late July to above Rs 115 now.
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Why Has the 1-Year Return Been Weak?
The 1-year return is only 4.7% because margins came under pressure and the whole state-owned banking pack sold off in early 2026. After touching Rs 135.15, the PNB share price slid towards the 52-week low of Rs 98.50.
Three factors hurt this public sector bank stock over the past year. First, net interest income fell as RBI rate cuts pushed loan yields down faster than deposit costs. NIM dropped to 2.61% in the March 2026 quarter from 2.96% a year earlier. Second, the February 2026 Budget announced record government borrowing and a review of the banking sector, which unsettled state-owned lenders. Third, in March 2026, rising bond yields, Middle East tensions and foreign outflows dragged this public sector bank stock down approximately 12% in a single month.
How Have the Bank’s Core Metrics Changed?
Quarterly Financial Trend
For this public sector bank stock, the quarterly numbers show profit and asset quality improving steadily, while net interest income has been flat. The table below covers the last five reported quarters.
| Quarter | NII (Rs Cr) | Net Profit (Rs Cr) | GNPA (%) | NNPA (%) | ROA (%) |
|---|---|---|---|---|---|
| Jun 2025 (Q1 FY26) | 10,578 | 1,675 | 3.78 | 0.38 | 0.37 |
| Sep 2025 (Q2 FY26) | 10,469 | 4,904 | 3.45 | 0.36 | 1.05 |
| Dec 2025 (Q3 FY26) | 10,533 | 5,100 (approx) | 3.19 | 0.32 | 1.02 |
| Mar 2026 (Q4 FY26) | 10,380 | 5,225 | 2.95 | 0.29 | 1.06 |
| Jun 2026 (Q1 FY27) | 10,798 | 5,253 | 2.78 | 0.28 | 1.04 |
Q2 FY26 NII is derived from reported half-year NII of Rs 21,047 crore. The June 2025 quarter profit was depressed by higher tax outgo, which is why the latest year-on-year growth looks so large. On a sequential basis, profit has been stable at around Rs 5,000 crore a quarter.
NIM, GNPA/NNPA and ROA
For any public sector bank stock, three numbers matter most. Global NIM was 2.50% in Q1 FY27, and domestic NIM was 2.64%. Management said it pruned approximately Rs 40,000 crore of low-yielding advances, which weighed on growth in interest income. The bank’s guidance for global NIM is 2.60% to 2.70%.
Asset quality is the strongest part of this public sector bank stock story. Gross NPA has fallen from 14.12% in March 2021 to 2.78% in June 2026, and net NPA from 5.73% to 0.28%. Slippage ratio was 0.68% and annualised credit cost was just 0.25% in Q1 FY27.
For this public sector bank stock, return on assets has moved above 1% for four straight quarters, reaching 1.04% in Q1 FY27 against 0.37% a year earlier. Annualised ROE was approximately 17.33%. Global advances grew 12.7% to Rs 12,73,132 crore and deposits grew 8.5% to Rs 17,24,837 crore.
Who Owns This Public Sector Bank Stock?
The government stake fell from approximately 73.2% in June 2024 to 70.08% after the QIP, and domestic institutions have been the main buyers of this public sector bank stock since. The table shows the change.
| Holder | Jun 2024 | Sep 2024 | Dec 2024 | Jun 2026 |
|---|---|---|---|---|
| Promoter (Government) | 73.2% | 70.1% | 70.1% | 70.08% |
| FII | 5.5% | 8.4% | 5.7% | 5.93% |
| DII (incl. MF, insurance) | 10.8% | 11.7% | 14.3% | 16.07% |
| Public | 10.6% | 9.8% | 9.9% | 7.92% |
Domestic institutional holding has risen to about 16.07%, with mutual funds at approximately 6.51% and insurers at around 9.40%. Foreign holding is modest at 5.93%. Rising domestic ownership has supported this public sector bank stock during periods of FII selling.
What Does the Valuation Look Like?
This public sector bank stock trades at approximately 6 times trailing earnings and around 0.9 times book value. The dividend yield is approximately 2.6%, backed by a final dividend of Rs 3 per share for FY26.
For a public sector bank stock, a price below book value, with ROA above 1% and net NPA below 0.3%, suggests the market is still cautious about margin trends and state ownership. For this public sector bank stock, any recovery in NIM towards guidance could narrow that valuation gap.
What Are the Risks for This Public Sector Bank Stock?
Margin pressure: The biggest worry for this public sector bank stock is margins. Global NIM at 2.50% is below the bank’s own guidance. Further rate cuts could squeeze loan yields before deposit costs adjust.
Slow deposit growth: Deposits grew 8.5% against advances growth of 12.7%, and the CASA ratio slipped to 36.7%. A widening gap could force the bank to pay more for funds.
Credit cost normalisation: Recent profits have been helped by very low provisions and recoveries. A domestic brokerage expects credit costs to drift back towards 35 to 60 basis points, which would slow earnings growth.
Policy and ownership: As a public sector bank stock, PNB is exposed to government decisions on stake sales, sector consolidation and directed lending. Bond yield spikes can also hit treasury income, as seen in March 2026.
Weak recent momentum: The 1-year return of 4.7% and a 3-year rank of 70th show that this public sector bank stock has lagged the wider market lately.
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PNB Share: Analyst View
Analysts covering this public sector bank stock are broadly positive on asset quality but divided on how much upside remains. After the Q1 FY27 results, one domestic brokerage kept a Buy rating, citing controlled provisions and operating costs, and management’s guidance of ROA above 1% in FY27. Another domestic brokerage maintained a Hold view.
The lender behind this public sector bank stock guides for credit growth of 12% to 13% in FY27. Gold loans more than doubled year on year to approximately Rs 31,800 crore, and management expects that book to reach around Rs 59,000 to Rs 60,000 crore by the end of FY27.
PNB Share Price Target
The verified PNB share price target range after the June 2026 quarter is Rs 115 to Rs 135. A domestic brokerage set a PNB share price target of Rs 135 with a Buy rating, while another domestic brokerage set a PNB share price target of Rs 115 with a Hold rating.
With the PNB share price at Rs 115.61, the stock already sits at the lower target and about 17% below the higher one. The 52-week high of Rs 135.15 is the key resistance level, while Rs 98.50 is the 52-week low that investors will watch on the downside. Targets for any public sector bank stock are opinions and can change with each quarterly result.
Conclusion
This public sector bank stock rose approximately 195% in five years because Punjab National Bank cleaned up a badly stressed loan book, turned a thin profit into a record Rs 16,904 crore, and strengthened its capital base. Most of the rally in this public sector bank stock came before 2025.
Today, the PNB share price reflects a lender with near-zero net NPA and ROA above 1%, but also soft margins and a 1-year return of just 4.7%. For this public sector bank stock, the next leg depends on a margin recovery and steady deposit growth, so investors should weigh the low valuation against these risks before deciding.
Disclaimer: Data and figures in this article are sourced from publicly available information and may or may not be accurate. Please verify all data independently before making any investment decision. Past returns do not guarantee future returns. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Which public sector bank stock rose 195% in 5 years?
Ans. Punjab National Bank (NSE: PNB) is the public sector bank stock that gained approximately 195.37% over five years as of 10 September 2026. It ranked 37th out of 101 large-cap and mid-cap NSE stocks in the 5-year return screen.
Why did the PNB share price rise so much in 5 years?
Ans. The rise came from a sharp fall in bad loans, with gross NPA dropping from 14.12% in March 2021 to 2.78% in June 2026. Net profit grew from Rs 2,507 crore in FY23 to a record Rs 16,904 crore in FY26.
Why is the 1-year return of PNB so low?
Ans. The 1-year return is only 4.7% because margins fell as interest rates came down, and state-owned bank shares sold off after the February 2026 Budget and during a bond yield spike in March 2026. The stock fell from Rs 135.15 to a low of Rs 98.50 before recovering.
What were PNB’s Q1 FY27 results?
Ans. PNB reported net profit of Rs 5,253 crore in the June 2026 quarter, up approximately 214% on a low base hit by a one-time tax charge. NII rose 2.1% to Rs 10,798 crore, gross NPA was 2.78% and ROA was 1.04%.
What is the NIM of Punjab National Bank?
Ans. Global NIM was 2.50% and domestic NIM was 2.64% in Q1 FY27. The bank guides for global NIM of 2.60% to 2.70%, so margins remain a key area to watch.
What is the PNB share price target?
Ans. After the Q1 FY27 results, one domestic brokerage set a target of Rs 135 with a Buy rating and another set Rs 115 with a Hold rating. The stock traded around Rs 115.61 on 10 September 2026.
Who owns Punjab National Bank?
Ans. The Government of India holds approximately 70.08% as of June 2026. Domestic institutions hold about 16.07%, foreign investors about 5.93% and the public about 7.92%.
Is PNB stock overvalued after a 195% rise?
Ans. PNB trades at approximately 6 times earnings and around 0.9 times book value, which is modest for a bank with ROA above 1%. The main risks are margin pressure and slower deposit growth, so investors should do their own research.
