The Business Bytes
New Delhi, October 28, 2024 (TBB Bureau): Punjab National Bank (PNB) on Monday reported a standalone net profit of Rs 4,303.5 crore for the quarter ending September 30, 2024, reflecting a remarkable growth of 145 per cent from Rs 1,756 crore in the same quarter last year. This significant increase is attributed to a substantial reduction in new provisions and contingencies.
PNB’s net interest income (NII) — the difference between interest earned and interest paid — rose by 6 per cent to Rs 10,517 crore in Q2 FY25, compared to Rs 9,923 crore year-on-year.
The bank’s Pre-Provision Operating Profit for the September 2024 quarter grew by 10.24 per cent, reaching Rs 6,853.31 crore, up from Rs 6,216.43 crore YoY.
PNB’s asset quality showed improvement in the quarter ended September 2024, with Gross Non-Performing Assets (NPAs) declining to Rs 47,582.25 crore from Rs 51,262.78 crore in the previous quarter. The Gross NPA ratio also fell to 4.48 per cent from 4.98 per cent quarter-on-quarter.
The global yield on advances stood at 8.31 per cent in Q2 FY25, compared to 8.15 per cent in Q2 FY24. The global cost of deposits increased by 32 basis points YoY to 5.18 per cent in Q2 FY25.
Net NPAs decreased to Rs 4,674.24 crore from Rs 5,930.06 crore quarter-on-quarter, resulting in a Net NPA ratio of 0.46 per cent, down from 0.60 per cent.
New provisions and contingencies in Q2 FY25 fell significantly to Rs 288.01 crore, down from Rs 3,444.18 crore YoY.
PNB’s savings deposits grew by 3.7 per cent YoY to Rs 4,88,635 crore, while current deposits increased by 1.6 per cent YoY to Rs 68,104 crore. CASA deposits rose by 3.4 per cent to Rs 5,56,739 crore, with CASA’s share of total deposits at 39.31 per cent as of September 2024.
Retail credit increased by 14.6 per cent YoY, reaching Rs 2,50,149 crore as of September 2024, with Core Retail Advances growing by 19 per cent YoY, according to PNB.
As of September 30, 2024, Punjab National Bank operated 10,159 domestic branches and 2 international branches, with 63.31 per cent of its branches located in rural and semi-urban areas.
