PNB shares up by more than 3% today

Punjab National Bank’s (PNB) shares are gaining today. At 1:00 p.m. IST, the share price is up by 3.22%, trading at Rs 113.04. Nifty 50 index is up by 0.086% at this time. Nifty PSU bank index is up by 1.82% at this time.

RBI eases some lending restrictions

Banking stocks like PNB are gaining today. RBI yesterday eased some lending regulations for banks. Banks can now give loans to jewelers against the security of gold or silver. Also, banks can now reduce the spreads that they charged ,based on the credit risk of the borrower, on business loans earlier than once in every three years. The borrower will also get the option to switch to fixed rate loan from floating rate loan at the time of reset of interest rate.

RBI to announce monetary policy tomorrow

The three-day monetary policy meeting of RBI is going on. RBI will announce its monetary policy decision tomorrow, 1^st October. Markets are expecting any of the two scenarios of the central bank going for an interest rate cut or keeping interest rate unchanged.

GST rate cuts have put downward pressure on inflation. There is therefore scope for the central bank to go for an interest rate cut and give a much needed boost to the economy. But on the other side, the rupee is continuously depreciating against the US dollar. It is the worst performing currency in Asia this year. It has depreciated by 5.67% against the US dollar in the past one year. If RBI cuts down interest rate tomorrow, then it may put further downward pressure on the value of rupee.

A depreciation in the value of rupee will make India’s imports more expensive. But it will also make its exports cheaper. Cheaper exports may cushion some of the blow that high US tariffs have given to India’s exports.

Interest rate cut may increase demand for loans

An interest rate cut will increase demand for loans from PNB and other banks. Gross non-performing assets and net non-performing assets of these banks will get favorably impacted from lower interest rates.

PNB’s stock has outperformed this year

PNB’s shares have lost 0.53% in the past 5 days. In the past 1 month the stock has gained 10.47%. Year-to-date in 2025, the stock has gained 10.07%. In this period, Nifty 50 index gained 3.85%. The stock has outperformed the Nifty 50 index by around 6% this year. 52-week high price of the stock currently is Rs 115.71. 52-week low price of the stock is Rs 85.46.

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Source: NSE