PNB Q1 Results 2024: Punjab National Bank (PNB) announced a significant rise in its standalone net profit for its first quarter, reporting Rs 3,252 crore, more than double the Rs 1,255 crore recorded in the same quarter last year. The surge in profit was driven by a reduction in bad loans and increased interest income.
The bank’s Q1FY25 Net Interest Income came in at Rs 10,476 crore up 10% YoY from Rs 9504 crore in Q1FY24.
Total income for the quarter grew to Rs 32,166 crore from Rs 28,579 crore, while interest income rose to Rs 28,556 crore from Rs 25,145 crore year-on-year.
PNB’s Gross Non-Performing Assets (NPAs) decreased to 4.98% of gross advances as of June 2024, down from 7.73% a year earlier. Net NPAs also fell to 0.60% from 1.98%. Consequently, provisions for bad loans dropped significantly to Rs 792 crore in Q1 FY25 from Rs 4,374 crore in the same period last year.
On a consolidated basis, which includes five subsidiaries and 15 associates, PNB reported a Q1 net profit of Rs 3,976 crore for the quarter, up from Rs 1,342 crore a year ago. The bank’s capital adequacy ratio improved to 15.79% by June 2024, compared to 15.54% a year earlier.
PNB FY25 Guidance
The PSU Bank is rather confident about the future growth prospects too. It has guided for a stable Net Interest Margin expansion of 2.9 – 3% for the entire fiscal after clocking 3.07% NIM in Q1. The bank also sees asset quality improving going forward. For entire FY25, PNB has guided for Net NPA below 0.5% from the 0.60% clocked in Q1FY25.