Punjab National Bank’s Q1 net profit surges by 159 per cent to Rs 3,252 crore

New Delhi [India], July 27 (ANI): Punjab National Bank’s (PNB) net profit surged by 159 per cent year-on-year (Y-o-Y), reaching Rs 3,252 crore for Q1 FY 2025 compared to Rs 1,255 crore in the same period last year.

This substantial increase is attributed to a robust performance across various financial metrics.

The Return on Assets (RoA) improved markedly to 0.82 per cent from 0.34 per cent, while the Return on Equity (RoE) saw a notable rise to 16.82 per cent from 7.50 per cent a year earlier.

The Net Interest Income (NII) also grew by 10.23 per cent Y-o-Y to Rs 10,476 Crore, up from Rs 9,504 Crore in Q1 FY 2024.

PNB’s asset quality showed considerable improvement. The Gross Non-Performing Assets (GNPA) ratio decreased by 275 basis points to 4.98 per cent as of June 2024, down from 7.73 per cent in June 2023.

Similarly, the Net Non-Performing Assets (NNPA) ratio improved by 138 basis points to 0.60 per cent from 1.98 per cent a year ago.

The Provision Coverage Ratio, including Technical Write-Offs (TWO), increased by 607 basis points to 95.90 per cent, and the ratio excluding TWO improved by 1259 basis points to 88.43 per cent.

Additionally, the slippage ratio improved by 43 basis points to 0.76 per cent, and the credit cost decreased by 167 basis points to 0.32 per cent from 1.99 per cent.

PNB reported a 10.27 per cent Y-o-Y increase in operating profit, which stood at Rs 6,581 Crore for Q1 FY 2025, compared to Rs 5,968 Crore in Q1 FY 2024.

The bank’s global business grew by 10.03 per cent Y-o-Y to Rs 24,36,929 Crore from Rs 22,14,741 Crore.

Global deposits registered an 8.50 per cent increase to Rs 14,08,247 Crore, while global advances rose by 12.20 per cent to Rs 10,28,682 Crore.

The Credit-Deposit (CD) ratio improved to 73.05 per cent as of June 2024, up from 71.79 per cent in March 2024 and 70.64 per cent a year ago.

Deposits saw healthy growth, with Savings Deposits increasing to Rs 4,84,377 Crore, reflecting a Y-o-Y growth of 4.4 per cent.

CASA Deposits grew by 3.4 per cent to Rs 5,49,079 Crore, maintaining a CASA share of 40.08 per cent.

Retail Term Deposits (less than Rs 3 Crore) grew by 9.2 per cent Y-o-Y to Rs 5,85,598 Crore.

Advances showed robust growth as well. Total Retail credit increased by 14.4 per cent Y-o-Y to Rs 2,34,564 Crore.

Core Retail Advances grew by 15.5 per cent, with Housing Loans up by 14.7 per cent to Rs 1,01,796 crore and Vehicle Loans rising by 26.9 per cent to Rs 21,726 crore. Agriculture Advances grew by 15.8 per cent to Rs 1,68,503 crore, and MSME Advances increased by 7.9 per cent to Rs 1,42,886 Crore.

PNB’s Capital Adequacy Ratio (CRAR) improved to 15.79 per cent from 15.54 per cent a year ago.

Tier-I Capital was reported at 13.04 per cent, with CET-1 and AT1 improving to 10.95 per cent and 2.09 per cent, respectively.

The bank’s achievements in the Priority Sector exceeded national goals, with Priority Sector Advances standing at 40.29 per cent of ANBC, Agriculture Advances at 18.29 per cent, and credit to small and marginal farmers, weaker sections, and micro enterprises also surpassing national targets.

Financial inclusion saw significant strides, with PMJDY accounts increasing to 5 Crore 13 Lakhs. Enrollments under PMJJBY, PMSBY, and APY also grew.

The bank’s digital initiatives gained momentum, with PNB One users increasing by 50 per cent and WhatsApp Banking users growing by 133 per cent. Digital loan disbursements rose by 48.5 per cent, and PNB became the first bank to launch the PM Vishwakarma Scheme in digital mode.

As of June 30, 2024, PNB operated 10,150 domestic branches and 2 international branches. The bank’s distribution network includes 12,080 ATMs and 32,630 Business Correspondents.

PNB’s innovative efforts were recognized with several awards, including the Infosys Finacle Innovation Awards and accolades for data quality and customer engagement.

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