Punjab National Bank Reports Strong Q2FY24 Performance

Punjab National Bank Reports Strong Q2FY24 Performance

VoM News Desk | October 27, 2023 | 11:41 AM IST | Breaking News | Follow on Google News

Punjab National Bank Reports Strong Q2FY24 Performance

Punjab National Bank Reports Strong Q2FY24 Performance

Punjab National Bank (PNB) saw its shares rise by 3.36% to ₹72.20 in early trading on Friday following a robust performance for the September quarter (Q2FY24), which exceeded analyst expectations. The bank reported a significant 20% YoY and 4.4% QoQ increase in its net interest income (NII) to ₹9,923 crore in Q2FY24. Furthermore, the net interest margin (Domestic) stood at 3.24%, an improvement from 3.11% in Q2FY23 and 3.21% in Q1FY24.

Strong Financial Indicators

PNB’s pre-provision operating profit (PPOP) for the quarter ending September 30, 2023, reached ₹6,216 crore, reflecting an 11.67% growth compared to the corresponding quarter of the previous year, which had PPOP of ₹5,567 crore. Notably, provisions declined by 29.8% YoY to ₹3,444 crore, and this reduction, combined with improved operating profit growth, resulted in the bank posting a net profit of ₹1,756 crore in Q2FY24. This marked the highest net profit in 14 quarters, representing a remarkable 327% YoY improvement. In the same quarter the previous year, the bank had reported a net profit of ₹411 crore.

Improved Asset Quality

On the asset quality front, Punjab National Bank demonstrated significant improvements. The gross non-performing asset (NPA) ratio decreased to 6.96% in Q2FY24, down from 10.48% in Q2FY23, while the net NPA ratio declined to 1.47% in Q2FY24, compared to 3.80% in Q2FY23.

Retail Loan Portfolio Growth

PNB’s retail loan portfolio exhibited robust growth during the quarter, encompassing vehicle, education, and personal loans. The bank’s earnings report highlighted the following achievements: housing loans increased by 13.7% YoY to ₹87,430 crore, vehicle loans surged by 28.3% YoY to ₹18,010 crore, and the personal loans segment saw a remarkable YoY growth of 39.0%, amounting to ₹19,868 crore. In total, the overall retail loan portfolio experienced a substantial 40.42% YoY increase, growing from ₹1,55,409 crore in September 2022 to ₹2,18,230 crore in September 2023. This substantial growth in retail loans is a notable indicator of the bank’s progress and potential for further expansion.

VoM News Desk

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