Punjab National Bank reported its Q3 financial results, showing a year-on-year rise in profitability alongside a moderation in core income, while asset quality indicators continued to improve on a sequential basis.
During the third quarter, Punjab National Bank posted a net profit of ₹5,100 crore, marking a 13% increase compared with ₹4,508 crore in the corresponding quarter of the previous year. The growth in bottom-line performance reflects better asset quality and controlled slippages, even as income trends remained under pressure.
Net interest income for the quarter stood at ₹10,533 crore, registering a decline of 4.5% from ₹11,032 crore reported in the same period last year. The contraction in NII indicates margin pressures amid changing interest rate dynamics and funding costs.
On the asset quality front, the bank reported a sequential improvement. Gross non-performing assets declined to 3.19% compared with 3.45% in the previous quarter, while net NPA improved to 0.32% from 0.36% on a quarter-on-quarter basis. The reduction in stressed assets highlights continued progress in balance sheet clean-up.
Provisions during the quarter increased to ₹1,151 crore, compared with ₹643 crore in the previous quarter. The higher provisioning reflects a cautious approach towards risk management and balance sheet strengthening.
