Punjab National Bank's Q1 FY 2025 Net Profit Skyrockets by 159%

Punjab National Bank reported a 159% year-on-year surge in net profit for Q1 FY 2025, reaching Rs 3,252 crore. The impressive results were driven by improvements across various financial metrics such as RoA, RoE, NII, and asset quality. The bank's digital transformation and financial inclusion efforts also contributed significantly.

Punjab National Bank (PNB) has reported a significant 159% year-on-year increase in net profit for the first quarter of FY 2025, reaching Rs 3,252 crore, compared to Rs 1,255 crore in the same period last year. This remarkable surge is attributed to robust performance across various financial metrics.

Key indicators showed marked improvement: the Return on Assets (RoA) enhanced to 0.82% from 0.34%, and Return on Equity (RoE) rose to 16.82% from 7.50% a year ago. The Net Interest Income (NII) climbed by 10.23% year-on-year to Rs 10,476 crore from Rs 9,504 crore in Q1 FY 2024.

Asset quality saw substantial improvement, with the Gross Non-Performing Assets (GNPA) ratio decreasing by 275 basis points to 4.98%, down from 7.73% in June 2023. The Net Non-Performing Assets (NNPA) ratio improved by 138 basis points to 0.60% from 1.98% a year earlier.

The Provision Coverage Ratio, including Technical Write-Offs (TWO), increased by 607 basis points to 95.90%, while excluding TWO, it improved by 1259 basis points to 88.43%. Additionally, the slippage ratio improved by 43 basis points to 0.76%, and the credit cost dropped by 167 basis points to 0.32% from 1.99%.

PNB's operating profit rose by 10.27% year-on-year to Rs 6,581 crore in Q1 FY 2025, up from Rs 5,968 crore in the previous year. Global business grew by 10.03% year-on-year to Rs 24,36,929 crore from Rs 22,14,741 crore.

Deposits and advances noted healthy growth. Global deposits increased by 8.50% to Rs 14,08,247 crore, and global advances saw a 12.20% rise to Rs 10,28,682 crore. The Credit-Deposit (CD) ratio stood at 73.05% as of June 2024, up from 71.79% in March 2024 and 70.64% a year earlier.

Savings Deposits escalated to Rs 4,84,377 crore, reflecting a 4.4% year-on-year growth. CASA Deposits grew by 3.4% to Rs 5,49,079 crore, maintaining a CASA share of 40.08%. Retail Term Deposits (less than Rs 3 crore) rose by 9.2% year-on-year to Rs 5,85,598 crore. Total Retail credit increased by 14.4% year-on-year to Rs 2,34,564 crore.

Core Retail Advances grew by 15.5%, with Housing Loans up by 14.7% to Rs 1,01,796 crore and Vehicle Loans rising by 26.9% to Rs 21,726 crore. Agriculture Advances increased by 15.8% to Rs 1,68,503 crore, and MSME Advances grew by 7.9% to Rs 1,42,886 crore. PNB's Capital Adequacy Ratio (CRAR) improved to 15.79% from 15.54% a year ago.

Tier-I Capital was reported at 13.04%, with CET-1 and AT1 improving to 10.95% and 2.09%, respectively. The bank's achievements in the Priority Sector exceeded national goals, with Priority Sector Advances at 40.29% of ANBC, Agriculture Advances at 18.29%, and credit to small and marginal farmers, weaker sections, and micro enterprises also surpassing national targets.

Financial inclusion initiatives recorded significant progress, with PMJDY accounts increasing to 5 Crore 13 Lakhs. Enrollments under PMJJBY, PMSBY, and APY also rose. The bank's digital transformation gained momentum, with PNB One users increasing by 50% and WhatsApp Banking users growing by 133%. Digital loan disbursements jumped by 48.5%, and PNB became the first bank to launch the PM Vishwakarma Scheme in digital mode.

As of June 30, 2024, PNB operated 10,150 domestic branches and 2 international branches, along with a distribution network comprising 12,080 ATMs and 32,630 Business Correspondents. PNB's innovative efforts were acknowledged with several awards, including the Infosys Finacle Innovation Awards for data quality and customer engagement.

These strong financial results highlight PNB's continued focus on growth, efficiency, and digital transformation, solidifying its position in the banking sector and its commitment to effectively serving customers. (ANI)

(With inputs from agencies.)