PNB : Shares of state-owned lender Punjab National Bank (PNB) rallied 7% to a high of Rs 128 on the BSE, driven by a remarkable 159% year-on-year (YoY) increase in net profit for the quarter ended June 30, 2024. The bank reported a net profit of Rs 3,252 crore for Q1 FY25, significantly higher than the Rs 1,255 crore recorded in the corresponding quarter of the previous financial year.
PNB’s net interest income (NII) also saw a notable increase, rising 10% YoY to Rs 10,476 crore. The bank’s total income for the quarter grew by 12.5%, reaching Rs 32,166 crore compared to Rs 28,579 crore in Q1 FY24. Additionally, the gross non-performing assets (GNPA) ratio improved by 275 basis points (bps) to 4.98% from 7.73% in June 2023, while the net non-performing assets (NNPA) ratio improved by 138 bps YoY to 0.60%.
PNB ( Punjab National Bank)
Among other highlights, PNB’s savings deposits grew by 4.4% YoY, reaching Rs 4,84,377 crore. The bank’s current deposits and CASA deposits stood at Rs 64,702 crore and Rs 5.49 lakh crore, respectively.
The strong quarterly performance was characterized by a sharp decline in provisions, with net interest margins (NIM) remaining broadly stable despite a slight contraction in Q1 FY25. Asset quality continued to improve, supported by high levels of recoveries and write-offs, leading to an enhanced provision coverage ratio (PCR) of 88%.
Domestic brokerage firms have reacted to PNB’s performance with mixed views. Kotak Institutional Equities has rated PNB as a ‘Sell’ with a target price of Rs 110, despite acknowledging the 160% YoY earnings growth driven by a 10% YoY increase in operating profit and a 70% YoY reduction in provisions. Kotak noted that the bank’s return on assets (RoA) was at 0.8% and return on equity (RoE) was at 12%. The brokerage also highlighted that the net NPL ratio was on par with SBI, with a slippage ratio of 0.8% and strong bad loan recoveries, as advances grew by 12% YoY, led by retail and agricultural sectors.
Read Also :
Supervivientes All Stars Concludes with Marta Peñate’s Triumph
Olympic Football : Argentina’s Rollercoaster Start at Paris 2024
