Punjab National Bank’s net profit in Q1 FY25 jumped sharply by 159%

Punjab National Bank (PNB) reported a significant year-on-year growth of 159% in net profit in the first quarter of fiscal 2025, reaching Rs 3,252 crore as against Rs 1,255 crore during the same period last year. This remarkable growth is attributed to solid performance across various financial indicators.

Key metrics showed marked improvement with Return on Assets (RoA) rising to 0.82% from 0.34% and Return on Equity (RoE) rising to 16.82% from 7.50% a year earlier. Net Interest Income (NII) rose 10.23% year-on-year to Rs 10,476 crore from Rs 9,504 crore in Q1FY24.

Asset quality improved significantly with the gross non-performing assets (GNPA) ratio decreasing by 275 basis points to 4.98% from 7.73% in June 2023. The net non-performing assets (NNPA) ratio improved by 138 basis points to 0.60% from 1.98% a year earlier.

The provision coverage ratio including technical provisions (TWO) rose by 607 basis points to 95.90%, while excluding TWO it improved by 1,259 basis points to 88.43%. In addition, the slippage rate improved by 43 basis points to 0.76% and the cost of credit fell by 167 basis points to 0.32% from 1.99%.

PNB’s operating profit rose 10.27% year-on-year to Rs 6,581 crore in Q1FY25, from Rs 5,968 crore in the previous year. Global business grew 10.03% year-on-year to Rs 24,36,929 crore from Rs 22,14,741 crore.

Deposits and advances recorded a healthy growth. Global deposits grew by 8.50 per cent to Rs 14,08,247 crore and global advances grew by 12.20 per cent to Rs 10,28,682 crore. The credit-to-deposit (CD) ratio stood at 73.05 per cent in June 2024, compared to 71.79 per cent in March 2024 and 70.64 per cent a year earlier.

Savings deposits rose to Rs 4,84,377 crore, reflecting a growth of 4.4% year-on-year. CASA deposits rose 3.4% to Rs 5,49,079 crore, maintaining CASA’s share at 40.08%. Retail term deposits (below Rs 3 crore) rose 9.2% year-on-year to Rs 5,85,598 crore. Total retail credit grew 14.4% year-on-year to Rs 2,34,564 crore.

Core Retail Advances grew 15.5%, home loans rose 14.7% to Rs 1,01,796 crore and auto loans rose 26.9% to Rs 21,726 crore. Agriculture advances rose 15.8% to Rs 1,68,503 crore and MSME advances rose 7.9% to Rs 1,42,886 crore. PNB’s Capital Adequacy Ratio (CRAR) improved to 15.79% from 15.54% a year ago.

Tier-I capital stood at 13.04% and CET-1 and AT1 improved to 10.95% and 2.09% respectively. The bank’s achievements in the priority sector exceeded the national targets with the progress in priority sector being 40.29% ANBC, progress in agriculture at 18.29% and credit to small and marginal farmers, weaker sections and micro enterprises also exceeded the national targets.

Financial inclusion initiatives saw significant progress with PMJDY accounts growing to 5 Crore 13 Lakhs. Enrollments under PMJJBY, PMSBY and APY also saw a rise. The bank’s digital transformation gained momentum with PNB One users growing by 50% and WhatsApp Banking users growing by 133%. Digital loan disbursements grew by 48.5% and PNB became the first bank to launch PM Vishwakarma scheme in digital mode.

As of June 30, 2024, PNB operated 10,150 domestic branches and 2 international branches, along with a distribution network of 12,080 ATMs and 32,630 business correspondents. PNB’s innovative efforts have been recognized with several awards, including the Infosys Finacle Innovation Awards for data quality and customer engagement.

These strong financial results underscore PNB’s continued focus on growth, efficiency and digital transformation, which strengthens its position in the banking sector and its commitment to serving customers effectively. (ANI)

(Based on information from the agency.)