Kotak Institutional Equities has an add call on Punjab National Bank with a target price of Rs 90. The current market price of Punjab National Bank is Rs 75.2 Time period given by the brokerage is year when Punjab National Bank price can reach defined target. .
Punjab National Bank, incorporated in 1969, is a banking company with a market cap of Rs 20856.13 crore.

Investment rational by Kotak Institutional Equities
The ramifications of the big fraud on the bank, both direct and indirect, has been far higher than initially anticipated. The bank has consumed a lot more capital and there would be further impact on Tier-1 ratio in the ensuing quarters till the balance sheet is stabilized. It is quite surprising to note that the domestic deposits did not see any impact post this crisis as it grew sequentially. The drop in Tier-1 ratio to <6% would result in a steep contraction in book value per share, negating our previous argument for a positive outlook at this time of the cycle. We are not factoring this quantum, but we have made adjustments to our target price as this is near certainty. Our TP stands revised to Rs 90 (from Rs 150 earlier).