Banking stocks are usually seen as one of the safest bets on the market, but on Monday it was Punjab National Bank (PNB) investors who hit the jackpot the moment trading opened. While heavyweights such as HDFC and Axis Bank slipped into the red, PNB bucked the trend and shot up more than 5%. At one point during the session it climbed 5.58% to touch ₹111.68. The stock later gave back some of those gains and was trading 3.66% higher at ₹109.64 around 1 pm. Market watchers, however, believe there is still plenty of steam left in the counter and expect it to climb further.
Profit More Than Tripled
The real fuel behind PNB's surge was the bank's blockbuster June-quarter numbers combined with upbeat brokerage reports. The bank reported a more than threefold jump in standalone net profit. For the quarter ended 30 June 2026, PNB clocked ₹5,253 crore in profit, against just ₹1,675 crore in the same quarter of the previous financial year, a massive year-on-year leap.
A Big Tax Saving Did the Trick
The single biggest reason behind this dramatic jump in profit was a sharp drop in the bank's tax liability. PNB's MD and CEO Ashok Chandra explained that the bank has now shifted to the new tax regime. That move cut the bank's tax liability by a hefty ₹3,358 crore in one go, which pushed its bottom line, the net profit, sharply higher.
Biggest-Ever First-Quarter Profit
Ashok Chandra said this was the highest profit PNB has ever posted in any first quarter (Q1) in its history. The bank's profit crossed the ₹5,000 crore mark for the first time, a milestone that reflects its steadily improving financial health. This strong showing has strengthened the confidence of both the market and major brokerage firms in the state-run lender.
Motilal Oswal Sets a ₹135 Target
Following these results, the well-known brokerage firm Motilal Oswal has turned decidedly bullish on the PNB stock. The firm has retained its Buy rating and fixed a target price of ₹135 for the counter. In plain terms, that signals roughly 28% more upside from current levels.
First a Dip, Then a Sharp Rebound
The brokerage noted that over the past three months the stock had lagged the Nifty Bank index and slipped about 5%, but the picture has now changed completely. An improvement in core profitability, resilient asset quality and strong FCNR mobilisation are giving solid support to the bank's funding profile. On the back of these strong fundamentals, Motilal Oswal has raised its earnings estimates for financial years 2027 and 2028 and upgraded the stock.
