Punyavathi is the story about Shanta (Krishna Kumari) who is an orphan and stays with S.V.Ranga Rao. Padma (Bhanumathi) is a very cruel women. She has a daughter Chitra (Jyotilaxmi) whom she loves a lot and treats well but she treats Shantha like a maid and not like a daughter. Shekar (Shoban Babu) is Shantha's brother. Prakash (N.T.Rama Rao) is a professor and also a atudent of S.V.Ranga Rao. He used to go to Shantha's home to study and in this process he falls in love with her. He has a great respect for his professor S.V.Ranga Rao and always follows his footsteps. Prakash's mother is blind and also her husband had left her when Prakash was too young. Once Prakash comes to know that S.V.Ranga Rao is his father and he cannot stand him anymore. S.V.Ranga Rao once comes to meet Prakash and at that time he comes to know that Prakash is his own son. But Prakash doesn't accept him as father as a result S.V.Ranga Rao falls ill and is about to die. But at the end Prakash accept s his father and the movie ends at the happy note.