Net Profit Of PNB Up 253% YoY To Rs 2,223 Cr

Punjab National Bank has released its financial results for the third quarter of the fiscal year 2023-24 (FY24), reporting a significant increase in its standalone net profit. The bank's net profit has soared by 253 per cent year on year (YoY) and reached Rs 2,223 crore. In the same period last year, the state-run lender had reported a net profit of Rs 629 crore.

Compared to the previous quarter, the bank has shown an improvement of 26.60 per cent in net profit. In the second quarter of FY24, the bank's net profit was recorded at Rs 1,756 crore. The bank's net interest income (NII) during the reporting quarter has also increased by 12.13 per cent YoY, reaching Rs 10,293 crore. In the preceding quarter, the bank had reported an NII of Rs 9,923 crore.

The bank's operating expenses decreased to Rs 6,636 crore in Q3 FY24 from Rs 6,801 crore in Q3 FY23. Its pre-provision operating profit (PPoP) for the December-ending quarter stood at Rs 6,331 crore, which was a growth of 10.75 per cent YoY. In Q2 FY24, the bank had reported a PPoP of  Rs 6,216 crore.

It is worth noting that provisions saw a significant 41.8 per cent decline, amounting to Rs 2,739 crore in Q3 FY24, compared to the same quarter's Rs 4,713 crore. This reduction in provisions and the strong improvement in operating profit contributed to the bank's impressive performance in the December quarter.

On the asset quality front, the GNPA ratio improved by 352 basis points (bps) YoY to 6.24 per cent in Q3 FY24 from 9.76 per cent in Q3 FY23, while the NNPA ratio improved by 234 basis points YoY to 0.96 per cent in Q3 FY24 from 3.30 per cent in Q3 FY23.

The lender's financial report shows positive growth in various areas. The provision coverage ratio improved by 911 basis points, reaching 94.28 per cent as of December 2023. Similarly, the slippage ratio improved YoY by 136 basis points, standing at 0.81 per cent in Q3 FY24.

Furthermore, the lender's global deposits increased by 9.35 per cent YoY, reaching Rs 13,23,486 crore in Q3 FY24. Similarly, global advances witnessed growth, with a YoY increase of 12.90 per cent, reaching Rs 9,67,256 crore during the same period.

In terms of specific advances, the lender saw YoY growth of 17.6 per cent in core retail advances, reaching Rs 1,53,384 crore in Q3 FY24. The bank's MSME advances also exhibited significant growth, increasing by 15.4 per cent to Rs 1,43,983 crore in Q3 FY24, compared to Rs 1,24,728 crore in Q3 FY23.