Punjab National Bank (PNB) shares fell 2% in early trade on Thursday after the bank released its Q1 FY25 business update. As of 10:21 AM, the shares were trading 2.17% lower at Rs 111.38.
The lender reported an 11.6% year-on-year growth in gross business, reaching ₹27.19 lakh crore. On a sequential basis, this marks a 1.4% increase. Domestic business grew by 11.1% annually to ₹26.17 lakh crore, showing 1.5% quarter-on-quarter growth.
Global deposits rose 12.8% YoY to ₹15.89 lakh crore, while domestic deposits increased by 12.2% to ₹15.37 lakh crore. Advances were up 10.1% YoY and 1.3% QoQ. However, overseas advances remained flat compared to Q4 FY24.
For the March quarter (Q4 FY25), PNB reported a 51.7% YoY rise in net profit to ₹4,567 crore. Net Interest Income stood at ₹10,757 crore, up from ₹10,363 crore in the same period last year. Return on Assets improved to 1.02%, up 25 basis points from Q4 FY24. The board approved a ₹2.9 dividend per share and fundraise of up to ₹8,000 crore through Basel III bonds.
Despite the figures, Citi maintained a ‘sell’ rating with a target price of ₹101, citing modest sequential growth in advances and deposits. It expects pressure on net interest income and margins due to the high share of External Benchmark Lending Rate-linked loans.
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