Punjab National Bank (PNB) has reported strong financial growth in its latest performance update, with significant increases in domestic and global deposits, advances, and overall business. The bank’s financial position has strengthened, reflecting improved customer trust, deposit mobilization, and lending activity. As of December 31, 2024, the Government of India held a 70.08% stake in PNB, ensuring strong government backing.
Growth in Domestic Deposits
As of March 31, 2025, PNB’s domestic deposits reached ₹15,10,456 crore, marking a 13.3% increase compared to ₹13,33,365 crore recorded on March 31, 2024. This growth highlights the bank’s ability to attract deposits from customers, driven by its competitive interest rates, digital banking services, and overall expansion efforts.
On a quarter-on-quarter (QoQ) basis, domestic deposits grew by 2.4%, rising from ₹14,74,760 crore as of December 31, 2024. This indicates steady growth within a short period, showing consistent inflows into the bank.
Expansion in Advances and Loans
PNB also reported a strong rise in advances (loans given to customers and businesses):
- Domestic Advances: Reached ₹10,66,818 crore as of March 31, 2025, marking a 13.2% year-on-year (YoY) increase from ₹9,42,552 crore in March 2024. On a QoQ basis, this figure grew 0.6% from ₹10,60,430 crore in December 2024.
- Global Advances: Increased 13.6% YoY to ₹11,17,407 crore (compared to ₹9,83,325 crore in March 2024). On a quarterly basis, global advances grew 0.6% from ₹11,10,292 crore in December 2024.
This growth in advances suggests higher credit demand from businesses and individuals, supported by PNB’s lending policies and economic expansion.
Rise in Global Deposits and Business Size
PNB’s global deposits, which include domestic and international operations, stood at ₹15,65,744 crore as of March 31, 2025, reflecting:
- A 14.3% YoY increase from ₹13,70,196 crore in March 2024.
- A 2.4% QoQ growth from ₹15,29,285 crore in December 2024.
With this strong rise in deposits and advances, PNB’s total global business (sum of deposits and advances) reached ₹26,83,151 crore, recording:
- 14% growth YoY from ₹23,53,521 crore in March 2024.
- 1.6% growth QoQ from ₹26,41,067 crore in December 2024.
Credit-Deposit Ratio Decline
The global credit-deposit (CD) ratio, which measures how much of the bank’s deposits are being used for lending, stood at 71.37% as of March 31, 2025, slightly lower than 71.79% recorded in March 2024. A declining CD ratio suggests that deposits are growing faster than advances, indicating a more liquid financial position for the bank.
Financial Performance: Surge in Net Profit
Punjab National Bank’s financial health has shown remarkable improvement, with a sharp increase in profitability:
- Net profit for Q3 FY25 surged 102.82% YoY to ₹4,508.21 crore, compared to ₹2,222.81 crore in Q3 FY24.
- Total income grew 15.99% YoY, reaching ₹34,751.70 crore for the quarter ending December 31, 2024.
This surge in profit can be attributed to higher interest income, lower bad loans, and improved cost efficiency.
