PNB Q2 Results: Net profit jumps 145% YoY to ₹4,303 crore, asset quality improves; Stock spikes 5% to reclaim ₹100

PNB Q2 Results: Punjab National Bank (PNB) on Monday reported a standalone net profit of ₹4,303.5 crore in the quarter ended September 2024, recording a substantial growth of 145% from ₹1,756 crore, in the year-ago quarter. A 2.5 times surge in PNB’s Q2 bottomline was due to a sharp fall in new provisions and contingencies.

PNB’s net interest income (NII), or the difference between interest earned and interest paid, in Q2FY25 increased 6% to ₹10,517 crore, from ₹9,923 crore, year-on-year (YoY).

Pre-Provision Operating Profit in the September 2024 quarter grew 10.24% to ₹6,853.31 crore from ₹6,216.43 crore, YoY.

Asset quality of the state-run lender improved during the quarter ended September 2024. PNB’s Gross Non-Performing Assets in Q2FY25 fell to ₹47,582.25 crore from ₹51,262.78 crore in the previous quarter. Gross NPA as a percentage of gross advances (Gross NPA Ratio) declined to 4.48% from 4.98%, QoQ.

The bank’s global yield on advances was at 8.31% in Q2FY25 as compared to 8.15% in Q2FY24. Global cost of deposits increased by 32 bps YoY to 5.18% in Q2FY25.

Net NPA in Q2FY25 decreased to ₹4,674.24 crore from ₹5,930.06 crore, QoQ, while Net NPA ratio also fell to 0.46% from 0.60%, sequentially.

The bank’s new provisions and contingencies in Q2FY25 declined to just ₹288.01 crore from ₹3,444.18 crore, YoY.

Deposits and Advances

PNB’s Savings Deposits increased to ₹4,88,635 crore, registering a growth of 3.7% YoY. Current Deposits rose 1.6% YoY to ₹68,104 crore.

CASA Deposits growth as 3.4% to ₹5,56,739 crore, while CASA share of the bank stands at 39.31% as on September 2024. 

The lender’s total Retail credit increased by 14.6% YoY to ₹2,50,149 crore as on September 2024. The bank grew under Core Retail Advances recording a YoY growth of 19.0%, PNB said.

As on 30th September 2024, Punjab National Bank has 10,159 domestic branches and 2 International Branches. Out of total number of branches, the bank has 63.31% branches in Rural & Semi-Urban areas.

PNB share price jumped more than 5% to above ₹100-mark after the announcement of Q2 results. At 2:10 pm, PNB share price were trading 5.38% higher at ₹100.95 apiece on the BSE.