PNB Q2 net seen up 122.2% at Rs 1123.3 cr: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal has come out with its July-September quarter earnings estimates for the banking sector. The brokerage house expects Punjab National Bank to report a 20.1 percent degrowth quarter-on-quarter (growth of 122.2 percent year-on-year) in net profit at Rs 1123.3 crore.

Net interest income is expected to increase by 1.2 percent Q-o-Q (up 10.4 percent Y-o-Y) to Rs 4432.7 crore, according to Motilal Oswal.

Loan and deposit growth both are expected to be 13 percent+ Y-o-Y, partially driven by a lower base as the bank was in a consolidation mode last year.

NII growth of 10.4 percent Y-o-Y. Margins are expected to remain stable Q-o-Q led by lower slippages (translating into lower interest income reversals) and continued benefit on account of reduction in bulk deposits and rising CASA ratio.

Fee income is expected to grow in line with balance sheet growth.

Performance on slippages has been volatile. We have factored a slippage ratio of 3.5 percent and credit cost of 1.5 percent. However, we expect recoveries to pick up as defaulters respond to notices issued and onetime settlements pick up.

PAT growth of 120 percent+ PAT on lower base from last year.

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