Punjab National Bank (PNB) demonstrated substantial growth across its deposit and advances portfolios in Q2 FY25, reflecting strengthened financial performance and customer engagement.
Deposits Performance:
- Savings Deposits: PNB saw a year-on-year increase of 3.7% in savings deposits, which totaled ₹4,88,635 crore.
- Current Deposits: Current deposits grew by 1.6% YoY, reaching ₹68,104 crore.
- CASA Deposits: CASA deposits, a key indicator of low-cost funds, increased by 3.4% YoY to ₹5,56,739 crore, with the CASA ratio standing at 39.31%.
- Total Term Deposits: The bank recorded a significant 16.8% growth in term deposits, which rose to ₹9,01,603 crore as of September 2024, underscoring customer trust and the bank’s deposit mobilization efforts.
Advances Performance:
- Retail Advances: Total retail credit surged by 14.6% YoY to reach ₹2,50,149 crore. Within the core retail advances, housing loans and vehicle loans saw notable growth:
- Housing Loans: Increased by 19.5% YoY, totaling ₹1,09,948 crore, driven by the bank’s continued focus on affordable housing schemes.
- Vehicle Loans: Jumped by 25% YoY to ₹22,543 crore, highlighting growing demand in this segment.
- Agriculture Advances: Agriculture sector lending grew by 11.1% YoY, with total advances reaching ₹1,62,829 crore, aligning with PNB’s commitment to supporting rural economies.
- MSME Advances: The bank reported an 8.9% increase in MSME advances, reaching ₹1,51,071 crore, indicating strong support for small and medium enterprises.
Asset Quality: PNB also showcased an improvement in asset quality. Gross Non-Performing Assets (GNPA) declined by ₹17,981 crore to ₹47,582 crore as of September 2024, from ₹65,563 crore in the previous year. Similarly, Net Non-Performing Assets (NNPA) decreased by ₹8,440 crore, settling at ₹4,674 crore compared to ₹13,114 crore YoY, reflecting the bank’s ongoing efforts to enhance its credit quality and recovery processes.
These results highlight PNB’s steady growth in its deposit base, particularly in term deposits, along with an impressive increase in retail, MSME, and agricultural advances, supported by improved asset quality.
