Punjab National Bank Q4 results: Net profit zooms 160% to Rs 3,010 crore

Punjab National Bank on May 9 reported a 160 percent surge in its net profit to Rs 3,010.27 crore in the fourth quarter of the financial year 2023-24.

On a sequential basis, the state-run lender's net profit zoomed 35 percent.

Asset quality

In the reporting quarter, the bank's gross non-performing assets (NPA) ratio stood at 5.73 percent, as against 6.24 percent a quarter ago, and 8.74 percent last year.

Its net NPA stood at 0.73 percent as on March 31, 2024, as against 0.96 percent in the previous quarter and 2.72 percent in the year-ago period.

In absolute terms, gross NPA declined by Rs 20,985 crore to Rs 56,343 crore as on March 2024 from Rs 77,328 crore as on March 2023. Net NPA declined by Rs 15,786 crore from March 2023 to Rs 6,799 crore as on March 2024.

Provision Coverage Ratio (including TWO) improved by 849 basis points (bps) on-year to 95.39 percent as on March 2024. Provision Coverage Ratio (Excluding TWO) improved by 171 bps to 87.9 percent from 70.8 percent in March 2023.

Slippage ratio improved on-year by 159 bps to 0.72 percent in FY24 from 2.31 percent in FY23.

Deposits and advances

Savings Deposits increased to Rs 4.80 lakh crore registering a on-year growth of 3.5 percent. Current Deposits grew by Rs 3,565 crore as on March 2024 to Rs 72,201 crore on Quarter-on-Quarter basis.

CASA Deposits increased to Rs 5.53 lakh crore recording a on-year growth of 2.7 percent.

Total Retail credit increased by 12.6 percent to Rs 2.23 lakh crore in March 2024.

The bank grew impressively under Core Retail recording a on-year growth of 15.2 percent.

Within Core Retail Credit, Housing Loan grew by 14.5 percent to Rs 93,694 crore, vehicle loan posted a growth of 25.6 percent to reach Rs 20,692 crore, and personal loan increased by 14.4 percent to Rs 20,766 crore.

Agriculture Advances grew by 11.3 percent on-year to Rs 1.58 lakh crore and MSME Advances increased on-year by 7.0 percent to Rs 1.39 lakh crore in March 2024.

NII and NIM

Domestic Net Interest Margin stands at 3.25 percent in Q4 FY24.

Global Yield on Advances improved on-year by 50 bps to 8.44 percent in Q4 FY24 and by 112 bps to 8.28 percent in FY24.