25-Jan-2024
2 mins read
Punjab National Bank: India’s public sector bank PNB released its third quarter results for the fiscal year 2023-24. It reported a standalone Net profit of Rs 2,223 crore, with a jump of 253% year-on-year.
Last year, PNB’s net profit stood at Rs 629 crore. However, the Net profit increased by 26.20% compared to Rs 1,756 in the previous quarter of FY24.
Bank’s Net interest income also increased 12.13% to Rs 10,293 crore yearly. From July to September 2023, the Bank reported an NII of Rs 9,923 crore.
How is PNB Share Price Reacted?
On January 25, 2024, the Punjab National Bank (PNB) stock price traded bullishly. However, after the earnings release, the share price rose and closed the session at Rs 104.50 with a one-day gain of +2.25%.
Drop in Provision, Boosted Profit Growth
PNB’s operating expenses declined to Rs 6,636 in Q3FY24 from Rs 6,801 in Q3FY23. Bank’s pre-provision operating profit stood at Rs 6,331 crore in December, ending with a growth of 10.75% YoY. Meanwhile, in Q2FY24, the Bank reported a pre-provision profit of Rs 6,216 crore. The provision dropped 41.8% YoY to Rs 2,739 crore.
The drop in provisions and increased operating profit led the bank to show a sharp jump in its net profit for the December quarter.
Gross and Net NPA Update
The Gross NPA ratio improved by 352 bps points on a YoY basis to 6.24% in Q3 FY24 from 9.76% in Q3 FY23. The Net NPA ratio improved by 234 bps to 0.96% in Q3FY24 from 3.30% in Q3FY23.
The provision coverage ratio also improved and reached 92.28% in December 2023. Meanwhile, the slippage ratio stands at 0.81% as of December 2023.
Global Business Update
Global deposit revenue growth reached Rs 13,23,486 crore, showing an increase of 9.35% YoY. Global advances also witnessed growth with a YoY increase of 12.90%, reaching Rs 9,67,256 crore.
Retail Advances grew 17.6% YoY, reaching Rs 1,53,384 in Q3 FY24. Furthermore, the MSME advances increased by 15.4% to Rs 1,43,983 crore in Q3 FY24 compared to the same period in the last year.