Punjab National Bank has reported strong 103% jump in net profit at Rs 4508.21 crore for the quarter ended December 2024 (Q3FY2025). The bank has posted 7% growth in net interest income (NII), while the core fee income of the bank also improved 20% in Q3FY2025. The Net Interest Margin (NIM) of the bank was steady on sequential basis at 2.93% in Q3FY2025 and eased from 3.15% in the corresponding quarter of previous year.
On business front, the bank has posted accelerated 15% growth in business with strong 15% surge in loan book. The asset quality of the bank has further improved in Q3FY2025. Bank has reduced the credit to deposit ratio to 72.6% at end December 2024 from 73.1% at end December 2023. CASA ratio of the bank has declined to 36.7% at end December 2024 from 41.4% at end December 2023.Asset quality improves: The bank has further improved asset quality in Q3FY2025.
The fresh slippages of loans stood at Rs 1774 crore in Q3FY2025 compared with 2181 crore in previous quarter and Rs 1793 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 1333 crore, upgradations at Rs 640 crore and the write-off of loans was at Rs 1969 crore in Q3FY2025. The standard restructured loan book of the bank declined to Rs 6766 crore end December 2024. Provision coverage ratio was steady at 96.77% at end December 2024 compared to 96.67% a quarter ago and 94.28% a year ago. The capital adequacy ratio of the bank stood at 15.4% with Tier I ratio at 12.5% at end December 2024. The risk weighted assets of the bank has increased 13% YoY to Rs 831358 crore end December 2024.| Asset Quality Indicators: Punjab National Bank | ||||||||
| ' | Dec/24 | Sep/24 | Jun/24 | Mar/24 | Dec/23 | Variation | ||
| QoQ | YTD | YoY | ||||||
| Gross NPA (Rs Crore) | 45413.98 | 47582.25 | 51262.78 | 56343.05 | 60371.38 | -5 | -19 | -25 |
| Net NPA (Rs Crore) | 4437.43 | 4674.24 | 5930.06 | 6798.77 | 8815.88 | -5 | -35 | -50 |
| % Gross NPA | 4.09 | 4.48 | 4.98 | 5.73 | 6.24 | -39 | -164 | -215 |
| % Net NPA | 0.41 | 0.46 | 0.60 | 0.73 | 0.96 | -5 | -32 | -55 |
| % PCR | 96.77 | 96.67 | 95.90 | 95.39 | 94.28 | 10 | 138 | 249 |
| % CRAR - Basel III | 15.41 | 16.36 | 15.79 | 15.97 | 14.63 | -95 | -56 | 78 |
| % CRAR - Tier I - Basel III | 12.53 | 13.63 | 13.04 | 13.17 | 11.73 | -110 | -64 | 80 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
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Business Highlights:
Strong business growth: The business of the bank has increased 15% YoY to Rs 2639991 crore end December 2024, driven by 15% surge in advances to Rs 1110292 crore. Deposits rose 16% to Rs 1529699 crore at end December 2024.
CASA deposits ratio declines: The CASA deposits of the bank increased 3% YoY to Rs 562156 crore at end December 2024. The current account deposits increased 2% to Rs 70018 crore, while saving account deposits increased 3% to Rs 492138 crore end December 2024. The CASA ratio declined to 36.7% at end December 2024 compared to 41.4% at end December 2023, while declined from 38.2% a quarter ago. The term deposits have increased 25% to Rs 967543 crore end December 2024. Overseas deposits have increased 61% to Rs 54938 crore end December 2024.
Strong loan growth: Advances growth was driven by retail loans rising 23% YoY to Rs 262627 crore at end December 2024, while credit to agriculture increased 13% to Rs 174472 crore and MSME 11% to Rs 159383 crore at end December 2024. The corporate credit has moved up 11% to Rs 463723 crore end December 2024. The overseas credit has jumped 36% to Rs 50087 crore end December 2024.
Investment book of the bank increased 11% YoY to Rs 469330 crore at end December 2024. The SLR book moved up 13% to Rs 349189 crore, while non SLR book rose 5% to Rs 113753 crore at end December 2024. The AFS book increased 10% to Rs 101671 crore, while HTM book rose 4% to Rs 337160 crore at end December 2024. The duration of the AFS investment portfolio stood at 3.89 years end December 2024 compared with 3.54 years at end December 2023.
Margins steady qoq, decline yoy: The bank has showed 28 bps YoY jump in cost of deposits to 5.24%, while yield on advances declined 7 bps YoY to 8.38% in Q3FY2025. NIM has declined 22 bps YoY to 2.93%, while rose 1 bps qoq to 2.93% in Q3FY2025.
Branch expansion: The bank has added 9 branches and reduced 6 ATMs in Q3FY2025, taking overall tally to 10168 branches and 12034 ATM`s end December 2024.
Book value of the bank stood at Rs 102.2 per share at end December 2024, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 96.9 per share at end December 2024.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 15% increase in the interest earned at Rs 31339.83 crore, while interest expenses increased 19% to Rs 20307.58 crore in Q3FY2025. NII improved 7% to Rs 11032.25 crore in the quarter ended December 2024.
Healthy growth in the core fee income: Bank has posted strong 20% growth in core fee income to Rs 1568 crore, while the treasury income rebounded to Rs 933 crore and other income jumped 250% to Rs 14 crore, leading to 28% rise in the overall non-interest income to Rs 3411.87 crore in the quarter ended December 2024. However, the recoveries income declined 60% to Rs 823 crore and forex income fell 15% to Rs 74 crore in Q3FY2025.
Expenses ratio rise: The operating expenses of the bank increased 18% to Rs 7823.57 crore, as other expenses moved up 4% to Rs 2559.79 crore, while employee expenses increased 26% to Rs 5263.78 crore in Q3FY2025. Cost to income ratio jumped to 54.2% in Q3FY2025 compared with 51.2% in Q3FY2024, allowing the Operating Profit to rise 5% to Rs 6620.55 crore.
Provisions and contingencies reversed: The bank has written back provisions of Rs 285.40 crore in Q3FY2025. The loan loss provisions declined jumped to Rs 318 crore, while the bank has written back investment provisions of Rs 191 crore and standard asset provisions of Rs 425 crore.
Effective tax rate declined to 34.7% in Q3FY2025 from 38.1%. Net Profit rose by 103% YoY to Rs 4508.21 crore during quarter ended December 2024.
Financial Performance 9MFY2025:
Bank has posted 130% increase in net profit to Rs 12063.20 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 8% to Rs 32025.19 crore, while non-interest income moved up 27% to Rs 11593.48 crore, pushing up net total income by 12% to Rs 43618.67 crore in 9MFY2025. The operating expenses increased 16% to Rs 23563.65 crore, while provision and contingencies dipped 87% to Rs 1314.93 crore, allowing profit before tax to increase 124% to Rs 18740.09 crore in 9MFY2025. The cost-to-income ratio rose to 54.0% in 9MFY2025 compared to 52.3% in 9MFY2024. An effective tax rate declined to 35.6% in 9MFY2025 compared to 37.4% in 9MFY2024. The net profit has increased 130% to Rs 12063.20 crore in 9MFY2025.| Punjab National Bank: Results | |||||||||
| Particulars | 2412 (3) | 2312 (3) | Var % | 2412 (9) | 2312 (9) | Var % | 2403 (12) | 2303 (12) | Var % |
| Interest Earned | 31339.83 | 27287.81 | 15 | 89771.27 | 78788.19 | 14 | 106901.62 | 85144.11 | 26 |
| Interest Expended | 20307.58 | 16995.02 | 19 | 57746.08 | 49068.23 | 18 | 66818.55 | 50652.48 | 32 |
| Net Interest Income | 11032.25 | 10292.79 | 7 | 32025.19 | 29719.96 | 8 | 40083.07 | 34491.63 | 16 |
| Other Income | 3411.87 | 2673.84 | 28 | 11593.48 | 9135.93 | 27 | 13383.54 | 12142.53 | 10 |
| Net Total Income | 14444.12 | 12966.63 | 11 | 43618.67 | 38855.89 | 12 | 53466.61 | 46634.16 | 15 |
| Operating Expenses | 7823.57 | 6635.92 | 18 | 23563.65 | 20340.76 | 16 | 28535.80 | 24105.41 | 18 |
| Operating Profits | 6620.55 | 6330.71 | 5 | 20055.02 | 18515.13 | 8 | 24930.81 | 22528.75 | 11 |
| Provisions & Contingencies | -285.40 | 2739.11 | -110 | 1314.93 | 10148.55 | -87 | 11736.60 | 18240.49 | -36 |
| Profit Before Tax | 6905.95 | 3591.60 | 92 | 18740.09 | 8366.58 | 124 | 13194.21 | 4288.26 | 208 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 6905.95 | 3591.60 | 92 | 18740.09 | 8366.58 | 124 | 13194.21 | 4288.26 | 208 |
| Provision for tax | 2397.74 | 1368.79 | 75 | 6676.89 | 3132.23 | 113 | 4949.59 | 1781.06 | 178 |
| PAT | 4508.21 | 2222.81 | 103 | 12063.20 | 5234.35 | 130 | 8244.62 | 2507.20 | 229 |
| EPS*(Rs) | 15.7 | 7.7 | ' | 14.0 | 6.1 | ' | 7.2 | 2.2 | ' |
| Adj BV (Rs) | 96.9 | 77.9 | ' | 96.9 | 77.9 | ' | 81.2 | 60.7 | ' |
| * Annualized on current equity of Rs 2298.59 crore. Face Value: Rs 2, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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