Public sector lender Punjab National Bank (PNB) has showcased a remarkable financial performance for the third quarter ending December 2023, reporting a net profit of Rs 2,222.8 crore. This marks a staggering 253.49 percent increase from the corresponding period in the previous fiscal year when the bank earned Rs 629 crore.
The positive trajectory extends beyond profits, with PNB’s total income rising to Rs 29,962 crore from Rs 25,722 crore, indicating a robust growth of 16.52 percent. The bank’s interest income also witnessed a substantial increase, reaching Rs 27,289 crore compared to Rs 22,384 crore in the same quarter of the previous fiscal.
A significant highlight is the substantial reduction in gross non-performing assets (NPAs), dropping from 9.76 percent to 6.24 percent year-on-year. The net NPAs also saw an impressive decline, decreasing from 3.30 percent to 0.96 percent over the same period.
Moreover, PNB’s stock demonstrated resilience, trading nearly 0.84 percent higher at Rs 102 apiece on the Bombay Stock Exchange at 2:50 pm.
The bank’s robust performance is further emphasized by the growth in net interest income (NII) by 12.13 percent year-on-year to Rs 10,293 crore and an operating profit of Rs 6,331 crore during Q3 FY24, representing a 10.75 percent YoY increase.
Notably, PNB’s credit cost improved by 61 basis points to 1.26 percent in Q3 FY24 from 1.87 percent in Q3 FY23. The provision coverage ratio (PCR) saw a substantial improvement of 911 basis points on a YoY basis, reaching 94.28 percent as of December 2023.
With a slippage ratio improving YoY by 136 basis points to 0.81 percent as of December 2023, PNB continues to strengthen its financial position. The bank’s global business also recorded a commendable 10.82 percent YoY increase, reaching Rs 22,90,742 crore as of December 2023.
PNB’s robust performance underscores its resilience and strategic management, positioning the bank for sustained growth in the dynamic financial landscape.