Punjab National Bank Moat Analysis: Score & Risks
Punjab National Bank
A first-pass moat teardown of Punjab National Bank, built from single-pass filing evidence. Free note — provisional, and the full two-pass deep dive may revise it.
First-pass narrow read — primary edge in Switching Costs. Provisional, single-pass evidence.
Punjab National Bank scores 4.88 on MoatSCORE 6.0 — a narrow moat in Banks. This is a first-pass note: the dimensional read and the filing receipts below come from a single GFIP evidence pass, not the full two-pass deep corpus behind our flagship deep dives. Provisional — published free while the deep version is queued.
Seven dimensions of moat
Ordered by contribution. Each dimension carries a verified filing quote, graded [M] mechanism or [O] outcome.
“We are focusing on serving them across their financial life cycle with tailored digital first solutions driving long-term relationship value.”
“More than 85% of the total externally rated advances above INR25 crores are above A rated and more than 52% are AAA rated, which indicates our balance sheet strength from risk point of view.”
“We added 144 branches in FY '26 and plan to open 250 more in current financial year. These branches will be primarily in the Southern and Western regions.”
“last year almost INR19,000 crores we have shed, and that too in the retail segment, because this was all the low-yielding advances. Despite that, we have grown at reasonably well.”
“cost of deposits rising to 5.25% as of September 2025 (from 5.14% a year earlier), and the cost of funds increasing to 4.64% (from 4.56%)”
“High Systemic Importance: PNB's GSR factors in its systemic importance due to its large size with a market share of 6% in sector assets and 7% in deposits, and the state's 73% ownership.”
D8 rating: ADEQUATE. Not part of the moat score — it governs the cost of equity and the fade window. First-pass; not yet deep-reviewed.
The barrier gate — first-pass
Effective barrier 5.5 — below 6, so the band is capped narrow. First-pass estimate.
Deep two-pass review. This draft rests on a single GFIP evidence pass; the full 10-year AR + concall corpus may move the read.
The barrier gate. A firmer replication or bypass estimate is the most likely thing to shift the band.
Adverse events. Any governance, regulatory or funding shock captured in D8 could re-rate the fade window.
Where this note fits. This company is one of 113 Indian companies we have scored for moat durability — 88 narrow, 25 narrow-trending-wide, none wide. The full ranked read: Wide-Moat Stocks in India: We Scored 113 Companies and Found None. Every score, dimension by dimension, is free in the Moat Screener.
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