Public sector lender Punjab National Bank (PNB) has reported a significant 159% year-on-year (YoY) jump in its net profit for the quarter ended June 30, 2024. The bank’s net interest income (NII) also saw a notable increase, rising to Rs 10,476 crore, up by 10% YoY.
Financial Performance
The net profit for the period stood at Rs 3,252 crore versus a PAT of Rs 1,255 crore in the corresponding quarter of the previous financial year. PNB’s total income for Q1 FY25 was recorded at Rs 32,166 crore, marking a 12.5% growth from Rs 28,579 crore for Q1 FY24. Additionally, the bank’s global and domestic net interest margins stand at almost 3%.
Asset Quality
In a positive development, the GNPA ratio for the quarter has improved by 275 basis points on a Y-o-Y basis to 4.98% from 7.73% in June 2023, while its NNPA ratio was up by 138 basis points YoY to 0.60%. Moreover, the net non-performing assets (NNPA) of the bank declined by Rs 11,199 crore to Rs 5,930 crore as of June 2024 from Rs 17,129 crore as of June 2023.
Deposit and Business Growth
PNB’s savings deposits registered a 4.4% YoY growth, increasing to Rs 4,84,377 crore, and its current deposits and CASA Deposits stood at Rs 64,702 crore and Rs 5.49 lakh crore respectively in the June quarter. The bank also reported a 10.03% YoY growth in its global business, with global deposits registering a growth of 8.50% year-on-year.
Other Key Highlights
- Slippage ratio improved by 43 basis points YoY to 0.76% as of June 2024 from 1.19% as of June 2023.
- Credit Cost improved by 167 basis points year-on-year to 0.32% in Q1 FY25 from 1.99% in Q1 FY24.
- The total retail credit increased by 14.4% YoY to Rs 2.35 lakh crore in June 2024, with the bank growing under core retail advances and recording a YoY growth of 15.5%.
Market Response
The shares of Punjab National Bank closed nearly 2% higher at Rs 120 on BSE, reflecting a positive market response to the bank’s strong performance.
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