Punjab National Bank vs State Bank of India

You put in a lot of effort, earned money, and decided to invest it in a public sector bank. However, you aren’t sure which bank to choose—the State Bank of India or Punjab National Bank.

In today’s blog post, we will compare the Punjab National Bank and the State Bank of India. 

Punjab National Bank Overview

Lala Lajpat Rai and Dyal Singh Majithia, leaders of the Swadeshi Movement, established the bank in Lahore, Pakistan, in 1894. The bank relocated its headquarters to New Delhi after India’s independence, and it was nationalized along with thirteen other banks later in 1969. It bought Nedungadi Bank in 2003 and merged with the United Bank of India and Oriental Bank of Commerce in 2020 to become India’s second-biggest public sector bank. The bank has 12,645 ATMs, 10,092 branches in India, and two international branches as of September 2023. The Punjab National Bank offers a wide range of services, including credit cards, insurance, mutual funds, fixed deposits, home loans, personal loans, etc. The company caters to the needs of MSMEs, retail investors, and big corporations.

SBI Bank Overview

SBI is India’s largest public sector bank and a titan of the nation’s banking sector, with the largest market share. SBI is a large financial institution with almost 200 years of history. Its main office is in Mumbai. SBI was established when the Bank of Calcutta, the first joint stock bank in British India, was established in 1806. Three separate presidential banks (the Bank of Bengal, the Bank of Bombay, and the Bank of Madras) arose throughout British India. In 1921, the three presidential banks merged to form the Imperial Bank of India. The Imperial Bank of India was nationalized by the Indian government in 1955 and was renamed the State Bank of India. Later, SBI bought several commercial and state-affiliated banks. To improve efficiency, the State Bank of India merged with its five affiliated banks—State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore in 2017. Rural communities now have access to banking services due to SBI. SBI currently has a robust distribution network with 65,627 ATMs and 22,405 branches.   

Company’s Comparative Study

Particular	Punjab National Bank	State Bank of India
Current Share Price	INR 117	INR 816
Market Capitalization (In INR Crores)	1,28,355	7,27,891
52-Week High Price	INR 143	INR 912
52-Week Low Price	INR 65.5	INR 543
FIIs Holdings (%)	5.51	11.15
DIIs Holdings (%)	10.76	23.64
Book Value Per Share	INR 100	INR 465
PE Ratio (x)	10.9	9.99

Read Also: PNB vs Bank of Baroda

Financial Statements Comparison

Income Statement Comparison (FY 2024)

Particular	Punjab National Bank	State Bank of India
Interest Income	1,09,064	4,39,188
Total Income	1,22,394	5,94,574
Total Expenditure	97,343	4,95,543
Net Profit	8,329	68,224

Balance Sheet Comparison (FY 2024)

Particular	Punjab National Bank	State Bank of India
Borrowings	72,585	6,39,609
Advances	9,41,762	37,84,272
Total Assets	15,98,635	67,33,778
Total Shareholder Funds	99,878	3,86,491

Cash Flow Statement Comparison (FY 2024)

Particular	Punjab National Bank	State Bank of India
Cash Flow From Operating Activities	-27,939	21,632
Cash Flow From Investing Activities	-1,506	-4,251
Cash Flow From Financing Activities	3,517	-9,896

Key Performance Indicators

Particular	Punjab National Bank	State Bank of India
Net Interest Margin (%)	2.53	2.66
Net Profit Margin (%)	7.63	15.51
ROE (%)	8.92	17.31
ROCE (%)	1.60	1.63
CASA (%)	40.22	39.92

Read Also: SBI vs ICICI Bank

Conclusion

To sum up, the State Bank of India and Punjab National Bank are regarded as major players in the Indian banking sector. An investor can choose the ideal investment opportunity by being aware of the differences between the two. However, one should evaluate their risk tolerance and speak with an investment advisor before making any financial decisions.  

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