PNB Gilts Limited is a leading primary dealer in the Government Securities Market. The Company undertakes more than 90% of its operations in Government Securities. Formed in 1996, PNB Gilts Ltd. is a subsidiary of Punjab National Bank and is licensed by the Reserve Bank of India as a Non-Banking Financial Company (NBFC). In 1996, the Reserve Bank of India introduced the system of Primary Dealers to strengthen the institutional infrastructure of the Government Securities market, and PNB Gilts was one of the six entities granted licenses.
The Company was established as a wholly-owned subsidiary of Punjab National Bank with an initial paid-up capital of Rs 50 crore. It is the only listed primary dealer in India, with public shareholding in the company being 25.93%. PNB Gilts received an oversubscription for an Initial Public Offer (IPO) of 3.5 crore shares in July 2000 at an offer price of Rs 30 per share, which increased the paid-up capital to Rs 135.01 crore.
PNB Gilts Limited's primary activities include supporting the government borrowing program through underwriting of government securities issuances and trading in a gamut of fixed income instruments. These instruments include Government Securities, Treasury Bills, Cash Management Bills, State Development Loans, Corporate Bonds, and Interest Rate Swaps. The company also deals in various money market instruments such as Certificates of Deposits and Commercial Papers.
The company is involved in the provision of custodian services to its constituents and offers a plethora of services in the fixed income space, such as Gilts accounts, Debt Capital Market (DCM) solutions, and retailing services. As part of its DCM business, it acts as an arranger or lead manager for private placement of debt by corporate entities and public sector units.
PNB Gilts serves a diverse client base including provident funds trusts, regional rural banks, co-operative banks, corporates, and individuals. The company focuses on creating value for its clients by providing customized solutions tailored to meet their unique investment needs and fostering awareness through continuous knowledge sharing, backed by solid in-house research and analysis.
PNB Gilts Ltd has a market capitalization of ₹1,617 crore as of March 2025. Promoter holding in PNB Gilts Ltd has remained stable at 74.07 per cent as of March 2025, from 74.07 per cent as of June 2024. The company has a low return on equity of 5.23% over the last 3 years.
- For the quarter ended March 2025 (Q4 FY2024-25):
- Net profit jumped 10.11% year-on-year to ₹75.02 crore.
- Sales declined 11.63% to ₹418.77 crore compared to ₹473.88 crore in Q4 FY2023-24.
- For the full year ended March 2025 (FY2024-25):
- Net profit rose 235.73% to ₹233.03 crore compared to ₹69.41 crore in FY2023-24.
- Sales rose 6.32% to ₹1,675.98 crore compared to ₹1,576.36 crore in FY2023-24.
The Board has recommended a final dividend of Rs. 1 per share (10%) for the Financial Year 2024-25, subject to the approval of members of the company at the ensuing Annual General Meeting.
PNB Gilts has been granted the License of NBFC by the Reserve Bank of India and operates as a Standalone Primary Dealer. With 27 years of operation, the company boasts rich experience and high standards in its service to a diverse client base in the fixed income market. It has been a pioneer in retailing Government Securities, contributing to a deep and broad-based market.
CRISIL Ratings reflect the expectation of strong support from its parent, Punjab National Bank, alongside healthy capitalization and strong liquidity. These strengths are partially offset by volatility in earnings due to inherent susceptibility to interest rate movements and a lack of diversity in revenue streams.
The range of products and services offered by PNB Gilts includes:
- Government Securities: T-bills, Central Government dated securities, State Government securities.
- Corporate Debt: Public Sector Unit (PSU) bonds, inter-corporate deposits.
- Money Market Instruments: Commercial Papers, Certificates of Deposits.
- Specialized Services: Gilt accounts, advisory services for G-Sec portfolios, Debt Capital Market (DCM) services.
PNB Gilts actively participates in auctions of G-Secs and infuses liquidity in the secondary market.
As of May 23, 2025:
- P/B ratio: 1.15 times, representing a 44% discount to its peers' median range of 2.05 times.
- P/E ratio: 7.62 times, representing a 47% discount to its peers' median range of 14.35 times.
- Return on Equity (ROE): 5.23% over the last 3 years.
- Stock Return: 13.44% in the last 3 years.
PNB Gilts Ltd has 52 employees.
PNB Gilts Ltd is listed and trades on the National Stock Exchange (NSE) with the stock symbol "PNBG." The listing date was September 18, 2000.
PNB Gilts Ltd stands as the only publicly listed primary dealer in India's government securities market, with a strong track record of supporting the country's debt management operations while maintaining profitability and dividend payments to shareholders.
