Punjab National Bank (PNB) reported a 103% YoY growth in net profit to ₹4,508.21 crore for Q3FY25, with total income rising 16%. Asset quality improved, and stock surged by 5%.
Punjab National Bank (PNB), one of India’s largest state-owned banks, reported impressive financial results for the quarter ending December 2024 (Q3FY25). The bank posted a net profit of ₹4,508.21 crore, marking an exceptional 103% increase compared to ₹2,222.8 crore in the same quarter last year. This stellar performance was accompanied by a strong growth in total income and an improvement in asset quality, which led to a 5% rise in the stock price following the results announcement.
Q3 Financial Highlights
PNB’s results showcased remarkable growth across multiple metrics:
- Net Profit: ₹4,508.21 crore, up 103% YoY
- Total Income: ₹34,751.7 crore, up 16% YoY
- Net Interest Income (NII): ₹11,033 crore, up 7.2% YoY
- Gross NPA: ₹45,413.98 crore, down from ₹60,371.38 crore YoY
- Net NPA: ₹4,437.43 crore, down from ₹4,674.24 crore QoQ
PNB’s Net Interest Income (NII) saw a 7.2% YoY increase, reaching ₹11,033 crore, driven by strong lending growth. The total income of the bank also increased by 16% YoY, marking a significant boost in revenue. On a sequential basis, however, income growth remained stable with only a 1% QoQ increase.
Improvement in Asset Quality
PNB made significant strides in improving its asset quality in Q3FY25. The bank’s Gross Non-Performing Assets (NPAs) declined to ₹45,413.98 crore, down from ₹60,371.38 crore a year ago. The Gross NPA ratio also improved to 4.09%, compared to 6.24% in Q3FY24. Similarly, Net NPA fell to ₹4,437.43 crore, and the Net NPA ratio improved to 0.41% from 0.96% a year earlier.
PNB’s Provision Coverage Ratio (PCR) remained stable at 96.8%, reflecting the bank’s prudent approach towards provisioning.
Other Key Metrics
PNB saw solid growth in both its advances and deposits:
- Advances: ₹15.29 lakh crore, up 15.6% YoY
- Deposits: ₹10.69 lakh crore, up 16.75% YoY
The credit-deposit ratio stood at 69.95%, slightly up from 69.24% in the same period last year.
PNB’s stock surged by over 5%, reaching an intra-day high of ₹101.60 following the positive results. The improved asset quality and solid growth in key financial metrics have bolstered investor confidence in the bank.
Looking ahead, PNB remains optimistic about sustaining its growth trajectory, with a focus on improving profitability, enhancing asset quality, and expanding its lending book in the coming quarters.
