Shares of Punjab National Bank (PNB) soared on Thursday after more than 55 lakh shares changed hands in multiple transactions. The stock was up 2.6% at Rs 56.90 on the NSE around 11:15 am.

The stock was heavily traded, with nearly 5.2 crore shares for sale. The state-owned bank has rallied in the past 4-5 sessions, benefiting from the strong appeal of PSU bank stocks.

The stock opened at Rs 55.70 today and continued its momentum while trading in the green. Nifty PSU bank shares traded strongly in an otherwise flat market. Eleven of the 12 stock indexes rose, with Indian Bank the only loser.

Brokerage firm Morgan Stanley is bullish on the counter. Morgan Stanley said in its report that public sector banks have performed well so far and are likely to continue to perform strongly in the coming quarters.

The brokerage expects higher margins for PSU banks over the next few years, with continued loan growth and higher operating leverage. It expects state-owned banks’ loan growth to continue and credit costs to remain benign.

It has been given an ‘equal-weight’ rating on PNB with a target price of Rs 60 per share. PNB Bank has returned more than 50% year-to-date. To put it into perspective, PNB stock was trading at Rs 44.95 per share on January 3 and is currently trading at Rs 57. PSU Bank has a market capitalisation of Rs 62,270 crore.

The stock has risen about 26% in the last month. Meanwhile, front-line indices BSE Sensex and NSE Nifty50 traded at 62,554.68 and 18,599.80, respectively.