Punjab National Bank (PNB) reported a significant 145% rise in its standalone net profit for the September quarter, reaching ₹4,303 crore, compared to ₹1,756 crore in the same period last year. Click here to check Net Profit of all Banks for September 2024 Quarter.
Financial Highlights
- Net Interest Income (NII): PNB’s NII increased by 5.99% year-on-year, standing at ₹10,517 crore in Q2 FY25, up from ₹9,923 crore in Q2 FY24.
- Global Net Interest Margin (NIM): NIM for the first half of FY25 was 2.99%, with a quarterly NIM of 2.92% in Q2 FY25.
- Interest Income: The lender reported an interest income of ₹29,875 crore in the September quarter, a 13% growth from ₹26,355 crore in Q2 FY24.
- Interest Expenditure: PNB’s interest expenditure rose by 18% to ₹19,358 crore in Q2 FY25, compared to ₹16,432 crore in the same quarter last year.
Also Read: Net Profit of all Banks in September 2024 Quarter
Market Impact
Following the earnings release during market hours, PNB’s stock surged 7%, reaching a peak of ₹101.95 on the NSE, with a trading price of ₹101.28 at 2 PM.
Asset Quality
- Gross Non-Performing Assets (NPAs): Gross NPAs fell to ₹47,582 crore in Q2 FY25, down from ₹51,263 crore in Q1 FY25 and ₹65,563 crore in Q2 FY24. In percentage terms, gross NPAs dropped to 4.48% in Q2 FY25 from 4.98% in Q1 FY25 and 6.96% in Q2 FY24.
- Net NPAs: Net NPAs were ₹4,674 crore in Q2 FY25, down from ₹5,930 crore in Q1 FY25 and ₹13,114 crore in Q2 FY24. Net NPAs as a percentage were 0.46% in Q2 FY25, compared to 0.60% in Q1 FY25 and 1.47% in Q2 FY24.
Return Ratios
- Return on Assets (RoA): Improved to 1.02% in Q2 FY25 from 0.46% in Q2 FY24.
- Return on Equity (RoE): Increased to 19.91% in Q2 FY25, up from 10.15% in Q2 FY24.
Operating Profit
PNB’s operating profit rose by 10.25% year-on-year, reaching ₹6,853 crore in Q2 FY25, compared to ₹6,216 crore in Q2 FY24.
These results reflect PNB’s ongoing efforts to improve profitability, asset quality, and overall financial health.
