MUMBAI: The third largest state-run lender Punjab National Bank (PNB) has reported a 13.1% jump in standalone net profit at Rs 5,100 crore in the December quarter despite a 4.5% fall in the key net interest income. On a sequential basis, the bank saw its bottom line swelling by 4% from Rs 4,904 crore in the September quarter and 13.1% on-year from Rs 4,508 crore.
The numbers announced during the market hours saw the PNB counter getting hammered to the tune of 5.4%, pulling it down from the 52-week high it reached earlier in the day when the market was choppy. The shares came down to Rs 125.25 at close from the 52-week high of Rs 135.15.
The bank stock has rallied by a sharp 58% from its March 2025 lows, indicating that the stock is currently in an over-stretched zone in the short term, according to a note by Anand Rathi Share and Stock Brokers. Gross non-performing assets came down to 3.19% from 4.09% and the net non-performing asset too improved to 0.32% from 0.41%.
Provisions surged during the December quarter but provision coverage ratio was high at 96.99, up 22 bps and the slippage ratio was at 0.67, up 2 bps, the management said in an exchange filing Monday. In the reporting quarter, the bank said its net interest income fell 4.5% to Rs 10,533 crore from Rs 11,032 crore but did not offer any reason.
The key profitability gauge net interest margin or NIM came in at 2.60%, down 49 bps from 3.09% in the same period last year. The bank reported an interest income of Rs 32,231 crore, up 2.8% from Rs 31,340 crore in the same quarter previous financial year and interest expended rose 7% to Rs 21,698 crore from Rs 20,308 crore.
Total business grew 9.5% to Rs 28.91 trillion and deposits increased 8.5% to Rs 16.6 trillion, while total advances rose 11% to Rs 12.31 trillion. Savings deposits stood at Rs 5.16 trillion, registering a 4.8% growth, while current deposits increased 9.1% to Rs 76,377 crore. As a result, Casa deposits rose 5.3% to Rs 5.92 trillion. Core retail advances expanded 18.9% of which housing loans grew 14.5% to Rs 1,27,364 crore, vehicle loans surged 35.7% to Rs 33,458 crore, agriculture loans increased 9.8% to Rs 1,91,629 crore, and MSME loans rose 18.1% to Rs 1,88,209 crore.