Punjab National Bank Q2 FY’24 results: Net profit soars to Rs 1,756cr at 327% YoY growth

Punjab National Bank (PNB) revealed its financial outcomes for Q2 FY’24, headlined by a net profit surge to ₹ 1756 Crore, which represents an impressive 327.14% YoY growth. The operating profit witnessed an 11.67% YoY elevation, amounting to ₹ 6,216 Crore. Concurrently, the bank’s net interest income swelled by 20%, culminating at ₹ 9,923 Crore.

Asset Quality and Business Metrics Show Positive Trends

Punjab National Bank’s data indicates an upswing in several key financial parameters. The Global NIM amplified by 11 bps YoY, registering at 3.11%. In tandem, there was a considerable improvement in the GNPA and NNPA ratios. These metrics stood at 6.96% and 1.47% as of September’23, respectively. Notably, the provision coverage ratio (including TWO) shot up by 795 bps YoY to 91.91%.

Punjab National Bank announces Q2 FY’24 results: Remarkable 327% YoY net profit growth. Photo courtesy of Meet.arpit99/Wikimedia Commons.

Expansions in Global Business and Deposits

The bank’s global business metrics manifested growth, with an 11.26% YoY increment reaching ₹ 22,51,631 Crore. Both global deposits and advances followed suit, with respective YoY growths of 9.75% and 13.43%. Key performance figures, including savings deposits and current deposits, reached ₹ 4,71,238 Crore and ₹ 67,038 Crore, respectively.

Growth in Retail and Core Segments

Punjab National Bank’s core retail advances escalated by 16.5% YoY, tallying at ₹ 1,47,247 Crore. This growth encompassed housing loans (13.7% YoY growth), vehicle loans (28.3% YoY growth), and personal loans (39.0% YoY growth). Moreover, total retail experienced a 40.42% YoY surge, while agriculture and MSME advances also exhibited respective YoY growths of 4.49% and 6.48%.

Profits and Income for HY1FY’24

For the first half of FY’24, Punjab National Bank recorded a net profit of ₹ 3,012 Crore, marking a 318.3% YoY growth. Operating profit for the same period rose by 11.3% YoY, with net interest income also seeing a 22.8% YoY hike. The total income and total interest income for Q2 FY’24 demonstrated respective growths of 27.7% and 30.8% YoY.

Operational Infrastructure of Punjab National Bank

As of 30th September’23, Punjab National Bank’s domestic footprint comprises 10,092 branches, categorized into rural (39%), semi-urban (24%), urban (20%), and metro (17%) sectors. Internationally, the bank has 2 branches. Additionally, they operate 12,645 ATMs and are in collaboration with 20,447 BCs.