The net profit of the state-run institution increased by 35 percent sequentially.
Punjab National Bank Ltd.‘s profit more than doubled in the fourth quarter of fiscal 2024, above analyst expectations. The public sector lender’s standalone net profit increased by 160% year on year to Rs 3,010.2 crore in the March quarter, according to an exchange filing on Thursday. Bloomberg analysts anticipated a net profit of Rs 2,276.99 crore. The bank’s net interest income, or core revenue, grew 9% year on year to Rs 10,363 crore. Other income increased 24.1% year on year to Rs 4,247.6 crore. Total income for the quarter was up 18.6% year-on-year to Rs 32,361.04 crore.
Punjab National Bank’s Q4 Results Highlights (Standalone)
Net interest income rose 9% to Rs 10,363 crore. (YoY)
Net profit increased by 159% to Rs 3,010 crore. (Bloomberg estimates Rs 2,276.99 crore). (YoY)
Gross NPA: 5.73% vs. 6.24% (QoQ)
NNPA: 0.73% vs. 0.96% (QoQ)
The lender’s asset quality improved, with a gross non-performing asset ratio of 5.73%, down 51 basis points sequentially. The net NPA ratio also improved to 0.73%, from 0.96% in the previous quarter.
Provisions (excluding tax and contingencies) fell 58.5% year on year to Rs 1588.05 crore. The provisions for NPAs fell 45.9% to Rs 1,957.9 crore.
The lender stated that the FY24 provisions and contingencies comprise Rs 238.68 crore (net) for increased provisions on standard accounts restructured under the Covid-19 resolution frameworks 1.0 and 2.0. In Q4, it also made a floating provision of Rs 150 crore.
In Q3, the lender made a provision of Rs 113.67 crore for alternative investment funds. However, in the March quarter, it reversed a provision of Rs 102.28 crore for AIFs and currently has a provision of Rs 11.39 crore as of March 31.
The capital adequacy ratio for the quarter ending March was 15.97%, up from 14.63% the previous quarter. Here, the CET-1 ratio was 11.04%. The bank’s board has recommended a dividend of Rs 1.50 per equity share with a face value of Rs 2 for FY24, subject to relevant clearances.
The capital adequacy ratio for the quarter ending March was 15.97%, up from 14.63% the previous quarter.
Here, the CET-1 ratio was 11.04%. The bank’s board has recommended a dividend of Rs 1.50 per equity share with a face value of Rs 2 for FY24, subject to relevant clearances.
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