PNB Q4 profit rises 52% to `4,567 cr

New Delhi: Punjab National Bank (PNB) on Wednesday reported 52 per cent rise in net profit at Rs 4,567 crore for Q4 FY25 helped by robust business growth and recovery. The lender had earned a net profit of Rs 3,010 crore in Q4 FY24.

During the quarter, the bank’s total income increased to Rs 36,705 crore from Rs 32,361 crore a year ago, PNB said in a regulatory filing. Interest income grew to Rs 31,989 crore from Rs 28,113 crore in Q4 FY25.

Net Interest Income (NII) in the quarter also improved to Rs 10,757 crore from Rs 10,363 crore in Q4 FY24. Total business (deposit and advances) of the bank rose to Rs 26.83 lakh crore, registering a growth of 14 per cent. Recovery in technically written off accounts stood at Rs 4,926 crore in FY25 while treasury income spiked to Rs 4,314 crore from Rs 1,157 crore earned in FY24.

PNB MD and CEO Ashok Chandra said the bank expects credit growth of 11-12 per cent while deposit to rise by 9-10 per cent in FY26. As far as corporate loans are concerned, he said, it should witness 9-10 per cent growth.

Chandra said the bank’s capital adequacy ratio remains high at 17 per cent and therefore there is no need for equity capital during the current financial year. However, the board approved a proposal to raise up to Rs 8,000 crore through issuance of Basel III-compliant bonds to be raised in one or more tranches during FY26.

Of this, he said, Rs 4,000 crore to be mobilised via additional Tier-I Bonds and remaining through Tier- II Bonds.

Chandra said, he expects to maintain net interest margin (NIM) of 2.8-2.9 per cent in FY26.

However, there may be some challenges on net interest income and NIM during the first half of the current financial year, he said, adding, deposit rates have almost peaked and there may be moderation of rates on liability side by 30-40 basis points. The bank’s NIM stood at 2.93 per cent at the end of March 2025.

Bank’s gross NPAs moderated to 3.95 per cent of gross advances as compared to 5.73 per cent by the end of March 2024. Similarly, Net NPAs came down to 0.40 per cent from 0.73 per cent.

The bank’s capital adequacy ratio rose to 17.01 per cent in FY25 from 15.97 per cent at the end of FY24. For FY25, the bank’s profit doubled to Rs 16,630 crore from Rs 8,245 crore in the previous year. Total income rose to Rs 1,38,070 crore from Rs 1,20,285 crore in the previous financial year.