MUMBAI: Third-largest public sector lender Punjab National Bank on Thursday said its net income for the March quarter zoomed 160% to Rs 3,010 crore on improved asset quality and higher loan disbursals.
For the full year ending March 2024, the New Delhi headquartered bank reported a net income of Rs 8,245 crore recording a robust 228.8% growth from Rs 2,507 crore posted in FY23.
In the reporting quarter, gross non-performing assets (NPAs) fell to 5.73% from 8.74% last year and from 6.24% a quarter ago, net NPAs plunged to 0.73% from 2.72% a year-ago and from 0.96% in the previous quarter, the bank management led by Atul Kumar Goel, the chief executive, told reporters in a concall.
In absolute terms, gross NPAs declined by Rs 20,985 crore to Rs 56,343 crore from Rs 77,328 crore in March 2023 and net NPAs plunged by Rs 15,786 crore from March 2023 to Rs 6,799 crore as of March 2024, he said.
While the net interest margin stood at 3.25%, total yield on advances improved 50 bps to 8.44 percent in Q4 and by 112 bps to 8.28% in FY24. Net interest income increased to Rs 10,363 crore in Q4 from Rs 10,293 crore in Q3 and Rs 9,499 crore in Q4FY23 showing an improvement of 9.1% year-on-year.
During FY24, the same rose 16.2% to Rs 40,083 crore from Rs 34,492 crore in FY23. Credit cost improved by 91 bps from 1.72% in Q4FY23 to 0.81% in Q4 FY24 and by 63 bps from 2.03% in FY23 to 1.4% in FY24, while the provision coverage ratio improved by 849 bps on-year to 95.39%, the slippage ratio improved on-year by 159 bps to 0.72 in FY24 from 2.31 in FY23.