Punjab National Bank (PNB) announced a remarkable 145% year-on-year (Y-o-Y) growth in net profit for Q2 FY25, reaching ₹4,303 crore, up from ₹1,756 crore in the same period last year. The state-owned bank’s robust performance highlights strong financials, credit growth, and improved asset quality.
Key Financial Highlights:
- Net Profit: ₹4,303 crore, up 145% Y-o-Y.
- Net Interest Income (NII): ₹10,517 crore, an increase of 5.99% Y-o-Y.
- Gross Non-Performing Asset (GNPA) Ratio: Improved by 248 basis points (bps) to 4.48%.
- Net Non-Performing Asset (NNPA) Ratio: Improved to 0.46%, down from 1.47% Y-o-Y.
Strong Growth in Key Segments:
- Retail Credit: Increased by 14.6% Y-o-Y to ₹2.5 trillion.
- Housing Loans: Grew by 19.5% Y-o-Y to ₹1.09 trillion.
- Vehicle Loans: Surged 25% Y-o-Y to ₹22,543 crore.
- Agriculture Advances: Up 11.1% Y-o-Y to ₹1.62 trillion.
- MSME Advances: Increased by 8.9% Y-o-Y to ₹1.51 trillion.
The bank’s RAM (retail, agriculture, and MSME) advances also grew by 12.03% Y-o-Y, reaching ₹5.64 trillion. Additionally, PNB’s credit-deposit ratio improved to 72.82%.
Digital Expansion and CASA Growth:
- CASA Deposits: Grew by 3.4% Y-o-Y, reaching ₹5.56 trillion.
- Digital Adoption: PNB One users rose to 20 million, a 30.7% Y-o-Y increase.
- WhatsApp Banking: Increased by 58.7% Y-o-Y to 4.3 million users.
PNB’s capital to risk-weighted assets ratio (CRAR) also improved to 16.36% in Q2, reflecting a stable capital base. With strong financials, digital expansion, and improved asset quality, PNB remains a key stock to watch in the banking sector.
