PNB’s standalone profit jumps 477%; asset quality improves
PNB’s operating profit stood at ₹5,866 crore for the quarter, up 11.4% from a year ago. Furthermore, net interest income saw a significant rise of 30.05% over the corresponding period of last year to ₹9,499 crore.
PremiumNew Delhi: State-owned lender Punjab National Bank (PNB) recorded a 477% jump in standalone net profit for the March quarter, demonstrating robust growth. The bank’s net profit was at ₹1,159 crore compared to ₹201 crore in the year-ago period.
PNB’s performance reflects strong momentum and resilience, notwithstanding a challenging economic environment, and came a day after the State Bank of India, the country’s largest bank, announcing record-breaking annual profit of ₹50,232 crore and Q4 profit of ₹16,695 crore.
PNB’s operating profit stood at ₹5,866 crore for the quarter, up 11.4% from a year ago. Furthermore, net interest income saw a significant rise of 30.05% over the corresponding period of last year to ₹9,499 crore.
Notably, the bank has made significant strides in key financial indicators. Its global net interest margin (NIM) rose by 48 basis points to 3.24% in Q4 FY23 from 2.76% in the year ago, indicating enhanced profitability and effective management of interest rate spreads.
Additionally, it improved its asset quality, with gross non-performing asset (GNPA) ratio falling 304 bps to 8.74% in March, compared to 11.78% in the year ago. Its net non-performing asset (NNPA) ratio also showed improvement, down 208 bps from a year earlier to 2.72% as of March 2023.
PNB’s focus on risk management is evident in its provision coverage ratio, which includes technical write-offs. The ratio saw a significant improvement of 530 bps from a year earlier, to 86.90%, up from 81.60% in March 2022, indicating PNB’s efforts to enhance provisioning for potential loan loss and strengthen its asset quality.
Besides, its credit cost saw a decline of 73 bps from the year ago to 1.72% in Q4, reflecting effective control over its credit risks and loan delinquencies.
Its global business grew by ₹2,34,522 crore, or 12.14%, to ₹21,65,844 crore compared to ₹19,31,322 crore a year earlier. Its global deposits rose 11.77% from a year earlier to ₹12,81,163 crore as of March 2023, while global advances increased by 12.68% to ₹8,84,681 crore.
PNB’s performance in managing risk-weighted assets was noteworthy as well, improving 408 bps to 55.31%.
For the full year, Punjab National Bank’s net profit fell 27% to ₹2507 crore. It was ₹3,456 crore in fiscal 2022. The bank’s robust financial results are indicative of its strategic focus on growth, profitability, and risk management. PNB’s efforts to strengthen its asset quality, improve provision coverage, and maintain healthy business growth have contributed to its impressive performance. With its positive trajectory, PNB continues to solidify its position as a key player in India’s banking sector.
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