State-owned Punjab National Bank (PNB) on Thursday (January 25) reported a 253.16% year-on-year (YoY) jump in net profit at ₹2,222.8 crore for the third quarter that ended December 31, 2023.
In the corresponding quarter last year, Punjab National Bank posted a net profit of ₹628.9 crore, the bank said in a regulatory filing. A CNBC-TV18 poll had predicted a profit of ₹2,229.5 crore for the quarter under review.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays depositors, jumped 12.1%, coming in at ₹10,293 crore against ₹9,179.4 crore in the corresponding quarter of FY23. The poll had predicted an NII of ₹10,065.8 crore for the quarter under review.
The gross non-performing assets (GNPA) stood at 6.24% in the December quarter against 6.96% in the September quarter. Net NPA came at 0.96% against 1.47% quarter-on-quarter.
In monetary terms, gross NPA stood at ₹60,371 crore against ₹65,563.1 crore quarter-on-quarter, whereas net NPA came at ₹8,815.8 crore against ₹13,114.1 crore quarter-on-quarter. Provisions stood at ₹2,739.1 crore against ₹3,444.18 crore quarter-on-quarter and ₹4,713.34 crore (YoY).
Punjab National Bank's Return on Assets (RoA) increased by 41 basis points (bps) to reach 0.58%. Concurrently, the Return on Equity (RoE) surged by 860 bps to attain 12.45%. The bank's Net Interest Income (NII) experienced a commendable YoY increase of 12.13%, reaching ₹10,293 crore in Q3 of FY24.
The operating profit also demonstrated a healthy growth rate, reaching ₹6,331 crore, marking a 10.75% increase on a year-on-year basis. The Credit Cost decreased by 61 bps to 1.26% in Q3 FY24, compared to 1.87% in the same quarter of the previous fiscal year.
Furthermore, the Provision Coverage Ratio (including TWO) witnessed a substantial improvement, growing by 911 bps on a year-on-year basis to reach an impressive 94.28% as of December 2023.
Provisions during the quarter amounted to ₹2,739.1 crore, reflecting a decrease from ₹4,713.34 crore year-on-year and ₹3,444.18 crore quarter-on-quarter. This reduction contributed to an enhanced Provision Coverage Ratio, which stood at 94.28%, showcasing an improvement from the previous quarter's 91.90%.
Additionally, the Slippage Ratio, a key indicator of asset quality, exhibited positive trends by improving year-on-year by 136 bps to 0.81% as of December 2023.
Savings deposits increased to ₹4,78,880 crore as of December 2023 from ₹4,51,945 crore as of December 2022 registering a growth of 6.0% on a year-on-year basis. The current deposits increased to ₹68,636 crore as of December 2023 from ₹64,589 crore as of December 2022 registering a growth of 6.3% on a year-on-year basis.
The CASA deposit increased to ₹5,47,516 crore as of December 2023 from ₹5,16,534 crore as of December 2022 registering a growth of 6.0% on a year-on-year basis.
According to the bank, business per employee improved to ₹23.08 crore in December 2023 from ₹20.55 crore in December 2022. Business per branch improved to ₹220.51 crore in December 2023 from ₹200.74 crore in December 2022.
Net profit per employee improved to ₹9.16 lakh in Q3 of FY24 from ₹2.54 lakh in Q3 of FY23. The net profit per branch improved to ₹87.47 lakh in Q3 of FY24 from ₹24.83 lakh in Q3 of FY23.
Shares of Punjab National Bank ended at ₹105.47, up by ₹3.33, or 3.26% on the BSE.
First Published: Jan 25, 2024 3:36 PM IST
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