NEW DELHI: State-owned Punjab National Bank (PNB) on Monday reported stellar second quarter numbers with net profit of the bank increasing 145% year-on-year to Rs 4,303 crore due to a sharp fall in provisioning.
In the same quarter the previous year, the bank had reported Rs 1,756 crore in profit after tax.
Provisioning (other than taxes) during the quarter fell 92% year-on-year to Rs 288 crore compared to Rs 3,444 crore in the corresponding period last year. Net Interest Income (NII) of the bank increased to Rs 10,517 crore during the quarter from Rs 9,923 crore a year ago, showing an improvement of 5.99% on YoY basis. Global net interest margin (NIM) stands 2.92% in Q2FY25, down from 3.11% a year ago.
Operating profit rose YoY by 10.25% to Rs 6,853 crore in Q2 as against Rs 6,216 crore a year ago. On asset quality front, the bank showed a noticeable improvement as gross non-performing assets (GNPAs) declined by 248 bps on YoY basis to 4.48% as of September 24 from 6.96% a year ago. Accordingly, net NPAs also witnessed also dropped 101 bps to 0.46%.
Provision coverage ratio improved by 476 bps to 96.67% as on September 2024 as against 91.91% as on September 2023. The bank’s business grew by 12% to Rs 25.20 lakh crore as on September 2024 from Rs 22.51 lakh crore as on September 2023.
Deposits registered a growth of 11.33% YoY to Rs 14.60 crore as against Rs 13.09 crore a year ago. Advances increased by 12.76% to Rs 10.62 crore.
Meanwhile, Financial Services Institutions Bureau (FSIB), the body that recommends selection of directors in PSU banks, recommended Ashok Chandra for the position of Managing Director (MD) and CEO of Punjab National Bank (PNB). He is currently the Executive Director of Canara Bank. He will replace Atul Kumar Goel who retires in December.