PNB’s net profit zooms 327.14% to Rs 1,756 cr, highest in 14 quarters

New Delhi: Public sector lender Punjab National Bank (PNB) on Thursday reported a 327.14 per cent jump in net profit to Rs 1,756 crore in the September quarter — the highest in the previous 14 quarters — on the back of higher interest income and improved credit quality.

Operating Profit was at Rs 6,216 crore during Q2 FY24 grew by 11.67 per cent on year-on-year basis.

The bank’s net interest income grew about 20 per cent to Rs 9,923 crore during the second quarter of current fiscal, while operating profit grew 12 per cent to Rs 6,216 crore.

RAM share improved by 218 bps on year-on-year basis to 55.63 per cent as on September 30, 2023.

Punjab National Bank MD & CEO Atul Kumar Goel said credit cost will reduce in the coming quarters and profitability of the bank will increase.

The net interest income, net profit, and operating profit are highest in the past 14 quarters, he said. Goel further said there is no stress on the bank’s retail loan portfolio.

The portfolio, which includes vehicle, education and personal loans, stands at Rs 2.18 lakh crore. Of this, Rs 25,770 crore is unsecured loan, including Rs 17,467 crore of personal loan.

Of the Rs 17,467-crore unsecured personal loan, Rs 4,056 crore is through digital mode.

“From our side, there is no worry on unsecured personal loans... We are monitoring our loan portfolio every fortnight and if we see any sign of sickness or delinquency in personal loan, we do a root cause analysis,” Goel said.

Goel said the provisioning requirement of the bank will reduce in times to come.

Gross Non-Performing Assets (GNPA) were at Rs 65,563 crore as on September 30, 2023 as against Rs 87,035 crore as on September 30, 2022 declined by Rs 21,472 crore on YoY basis.

Net Non-Performing Assets (NNPA) were at Rs 13,114 crore as on September 30, 2023 as against Rs 29,348 crore as on September 30, 2022 declined by Rs 16,234 crore on year-on-year (YoY) basis.

GNPA ratio improved by 352 bps on YoY basis to 6.96 per cent as on September 30, 2023 from 10.48 per cent as on September 30, 2022.

NNPA ratio improved by 233 bps on YoY basis to 1.47 per cent as on September 30, 2023.

Provision Coverage Ratio (PCR) Excluding TWO improved by 1372 bps YoY to 80.0 per cent in September 2023 from 66.28 per cent in September 2022.

Savings deposits increased to Rs 4,71,238 Crore as on September’23 from Rs4,51,707 Crore as on September’22.

Current deposits were at Rs 67,038 crore as on September 30, 2023.

CASA Share (Domestic) stands at 42.15 per cent as on September 30, 2023 as compared to 41.90 per cent in

June 2023.

Core Retail Advances grew YoY by 16.5 per cent to Rs 1,47,247 crore as on September 30, 2023.

Within Core Retail Credit: Housing Loan increased by 13.7 per cent on YoY basis to Rs 87,430 crore. Vehicle loan increased by 28.3 per cent on YoY basis to Rs 18,010 crore. Personal Loan increased by 39.0 per cent on YoY basis to Rs 19,868 crore.

Total Retail increased by 40.42 per cent YoY basis from Rs 1,55,409 crore in September 2022 to Rs 2,18,230 crore in September 2023.