Punjab National Bank's stock rose by 3.36 per cent to Rs 72.20 per share in early trading after the bank reported a robust performance in the second quarter of fiscal year 2024 (Q2FY24), surpassing analyst expectations. The bank achieved a 20 per cent YoY and 4.4 per cent QoQ increase in net interest income (NII) to Rs 9,923 crore in Q2FY24, with a net interest margin (Domestic) of 3.24 per cent, compared to 3.11 per cent in Q2FY23 and 3.21 per cent in Q1FY24.
The bank's pre-provision operating profit (PPOP) for the quarter ending 30 September 2023, reached Rs 6,216 crore, reflecting an 11.67 per cent YoY growth over the previous year's Rs 5,567 crore.
Provisions decreased by 29.8 per cent YoY to Rs 3,444 crore. The reduction in provisions and the improvement in operating profit resulted in the bank recording a net profit of Rs 1,756 crore in Q2 FY24, marking a 327 per cent YoY increase. In the same period last year, the bank reported a net profit of Rs 411 crore.
On the asset quality front, the bank's gross NPA ratio dropped to 6.96% in Q2FY24, down from 10.48 per cent in Q2FY23, while the net NPA ratio was 1.47 per cent in Q2FY24, down from 3.80 per cent in Q2FY23.
During the quarter, the bank's retail loan portfolio, including housing, vehicle, and personal loans, demonstrated robust growth. Housing loans increased by 13.7 per cent YoY to Rs 87,430 crore, vehicle loans surged by 28.3 per cent YoY to Rs 18,010 crore, and personal loans saw a YoY increase of 39.0 per cent, totaling Rs 19,868 crore.
Overall, the retail loan portfolio grew significantly by 40.42 per cent YoY, rising from Rs 1,55,409 crore in September 2022 to Rs 2,18,230 crore in September 2023.