PNB reports 327% surge in net profit, soaring to Rs 1,756 crore

Punjab National Bank (PNB) has released its financial results for the second quarter (Q2) and the first half of the fiscal year 2024 (HY1 FY'24), showcasing substantial growth and remarkable improvements across various key parameters.

PNB has reported a staggering 327 per cent increase in its net profit, image credit: Reuters

Punjab National Bank (PNB) has reported a staggering 327 per cent increase in its net profit, reaching Rs 1,756 crore for the most recent financial quarter, marking a substantial leap from the previous year's figures according to a release from PNB.

This surge in profitability reflects PNB's resilience and strategic financial measures, underscoring its robust position in the banking industry the release said.

Punjab National Bank (PNB) has released its financial results for the second quarter (Q2) and the first half of the fiscal year 2024 (HY1 FY'24), showcasing substantial growth and remarkable improvements across various key parameters.

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PNB reported a significant increase in savings deposits, rising from Rs 4,51,707 Crore in September 2022 to Rs 4,71,238 Crore in September 2023.

The bank held Rs 67,038 Crore in current deposits as of September 2023.

The CASA Share (Current Account and Savings Account) for domestic operations stood at 42.15 per cent in September 2023, compared to 41.90 per cent in June 2023.

The Core Retail Advances grew year-on-year by 16.5 per cent, reaching Rs 1,47,247 Crore in September 2023. This category includes housing loans (up 13.7 per cent to Rs 87,430 Crore), vehicle loans (up 28.3 per cent to Rs 18,010 Crore), and personal loans (up 39.0 per cent to Rs 19,868 Crore).

PNB experienced growth in Agriculture Advances by 4.49 per cent and in MSME Advances by 6.48 per cent year-on-year.

The bank's net profit increased substantially to Rs 1,756 crore during Q2 FY'24, with a remarkable year-on-year growth of 327.14 per cent.

The Provision Coverage Ratio, including TWO (technical write-offs), improved significantly by 795 bps year-on-year, reaching 91.91 per cent as of September 2023.

The Gross Non-Performing Assets (GNPA) ratio improved by 352 bps year-on-year to 6.96 per cent, and the Net Non-Performing Assets (NNPA) ratio improved by 233 bps year-on-year to 1.47 per cent as of September 2023.

The credit cost declined by 45 bps year-on-year, standing at 1.31 per cent in Q2 FY'24.

PNB's global business increased by 11.26 per cent year-on-year to Rs 22,51,631 crore in September 2023, compared to Rs 20,23,713 Crore in September 2022.

The Global NIM improved by 11 bps year-on-year to 3.11 per cent in Q2 FY'24, compared to 3.00 per cent in Q2 FY'23.

PNB reported an improved CRAR (Capital to Risk (Weighted) Assets Ratio) of 15.09 per cent as of September 2023, compared to 14.74 per cent in September 2022.

As of September 2023, PNB maintained 10,092 domestic branches across various regions.

According to the release by PNB, the bank exceeded the national goal, with Priority Sector Advances standing at 41.6% of ANBC (Adjusted Net Bank Credit).

This included credit to small & marginal farmers, weaker sections, and micro-enterprises, all surpassing their respective national goals.

PNB demonstrated significant digital progress with impressive growth in the number of users adopting the PNB One App, as well as increased digital transactions, internet banking users, and mobile banking users.

PNB also received recognition and accolades for its CSR initiatives, including planting more than 1 lakh trees under the PNB Palaash program.

The bank was honoured at the Hindi Diwas Celebrations and received awards for its contributions to Rajbhasha Kirti, both first and second prizes.

The release says, Punjab National Bank continues to make strides in the banking sector with remarkable financial performance and extensive growth, both in terms of profitability and digital progress.

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