Punjab National Bank (PNB) has unveiled its Q3 FY24 financial results, showcasing a remarkable 253% year-on-year surge in standalone net profit, reaching ₹2,223 crore. The state-run lender’s robust performance is marked by significant improvements across various financial indicators, including net interest income, operating expenses, and asset quality.

Financial Highlights

1) Net Profit Surge

PNB reported a substantial 253% YoY increase in standalone net profit, recording ₹2,223 crore in Q3 FY24, compared to ₹629 crore in the same period last year.

Sequentially, net profit improved by 26.60%, rising from ₹1,756 crore in Q2 FY24.

2) Net Interest Income (NII) Growth

The bank’s NII during the reporting quarter increased by 12.13% YoY, reaching ₹10,293 crore, compared to ₹9,923 crore in the preceding quarter.

3) Operating Expenses and Pre-Provision Operating Profit (PPoP)

Operating expenses declined to ₹6,636 crore in Q3 FY24, contributing to a 10.75% YoY growth in PPoP, which stood at ₹6,331 crore.

In Q2 FY24, PPoP was reported at ₹6,216 crore.

4) Provisions and Asset Quality

Provisions witnessed a substantial 41.8% decline, amounting to ₹2,739 crore in Q3 FY24, compared to ₹4,713 crore in the same quarter.

The GNPA ratio improved by 352 basis points to 6.24%, and the NNPA ratio improved by 234 basis points to 0.96% on a YoY basis.

5) Capital Generation Plan

PNB’s board has approved the sale of shares to raise ₹7,500 crore through Qualified Institutions Placement (QIP)/Follow-on Public Offer (FPO) during FY2024-25.

The bank aims to maintain the government’s shareholding above 52%.

6) Global Deposits and Advances

Global deposits saw a YoY increase of 9.35%, reaching ₹13,23,486 crore.

Global advances witnessed a YoY growth of 12.90%, reaching ₹9,67,256 crore.

7) Retail and MSME Advances

  Core retail advances experienced a YoY growth of 17.6%, reaching ₹1,53,384 crore.

  MSME advances exhibited significant growth, increasing by 15.4% to ₹1,43,983 crore in Q3 FY24.

Capital Generation Plan Details

The board’s decision to raise equity capital to ₹7,500 crore includes share premium, if any, in one or more tranches during FY 2024-25 through QIP/FPO or any other permitted mode.

The Extraordinary General Meeting of Shareholders will be held on March 5, 2024, for voting on the proposed capital generation plan.

Summary

Punjab National Bank’s Q3 FY24 performance reflects a robust financial trajectory, marked by substantial profit growth, improved asset quality, and strategic capital generation plans—the bank’s proactive approach to enhancing financial resilience positions it well for future growth and stability.

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