Punjab National Bank Q3 Results: Net Profit reached ₹2,223 Crore FY’24

Last Updated on January 30, 2024 by ethinos

Punjab National Bank Financial Results for the Quarter Ended 31st December 2023 Key Highlights:

1. Net Profit Surge:

Net Profit reached ₹2,223 Crore in Q3 FY’24, marking an impressive YoY growth of 253.41%.

2. Return Metrics Improvement:

• Return on Assets (RoA) showed a YoY improvement of 41 bps, reaching 0.58% in Q3 FY’24.
• Return on Equity (RoE) exhibited a significant YoY growth of 860 bps, achieving 12.45% in Q3 FY’24.

3. Strengthened Financial Performance:

• Net Interest Income witnessed a robust YoY increase of 12.13%, reaching ₹10,293 Crore in Q3 FY24.
• Operating Profit for Q3 FY’24 stood at ₹6,331 Crore, reflecting a YoY growth of 10.75%.

4. Risk Management Progress:

• Credit Cost showed improvement, decreasing by 61 bps to 1.26% in Q3 FY’24 from 1.87% in Q3 FY’23.
• Gross Non-Performing Assets (GNPA) ratio exhibited a substantial improvement of 352 bps on a YoY basis, reaching 6.24% as of December’23.

5. Asset Quality Enhancement:

• Net Non-Performing Assets (NNPA) ratio improved by 234 bps on a YoY basis to 0.96% as of December’23.
• Provision Coverage Ratio (including TWO) saw a notable YoY improvement of 911 bps, reaching 94.28% as of December’23.

6. Operational Efficiency:

Slippage ratio demonstrated improvement, decreasing YoY by 136 bps to 0.81% as of December’23.

7. Global Business Growth:

• Global Business expanded by 10.82% on a YoY basis, totaling ₹22,90,742 Crore as of December’23.
• Global Deposits and Global Advances showed robust growth, increasing by 9.35% and 12.90% YoY, respectively.

8. Sector-Specific Advances:

• Core Retail Advances grew by 17.6% YoY to ₹1,53,384 Crore as of December’23.
• MSME Advances and Agriculture Advances (PS) exhibited growth of 15.4% and 17.4% YoY, respectively.

9. Market Recognition and Achievements:

• RAM share improved by 113 bps on a YoY basis, reaching 55.07% as of December’23.
• The bank accomplished all mandated targets under Priority Sector Advances.

10. Credit Rating Upgrades and Market Cap Milestone:

• CRISIL and ICRA upgraded PNB’s Bonds Ratings to AA+/Stable and AAA/Stable, reflecting confidence in the bank’s financial health.
• PNB achieved a significant milestone by crossing a Market Cap of Rs. 1 Lakh Crore in December 2023.

Additional Read: Q3 Results Dashboard

Business Performance in Key Parameters:

1. Deposit Growth:

• Savings deposits increased to ₹4,78,880 Crore in December’23, reflecting a YoY growth of 6.0%.
• Current deposits also experienced growth, reaching ₹68,636 Crore in December’23, a 6.3% YoY increase.
• CASA Deposit grew to ₹5,47,516 Crore in December’23, showing a 6.0% YoY growth, with CASA Share standing at 42.47%.

2. Retail Credit Expansion:

• Total Retail increased by 19.0% on a YoY basis to ₹2,14,215 Crore in December’23.

Core Retail Credit showcased notable growth:

• Housing Loan increased by 15.1% YoY to ₹90,579 Crore.
• Vehicle loan saw a robust 26.2% YoY growth, reaching ₹19,440 Crore.
• Personal Loan surged by 30.9% YoY to ₹20,696 Crore.
• Agriculture Advances grew by 11.5% YoY, totaling ₹1,54,129 Crore in December’23.

3. Profitability Highlights:

• Net Profit for Q3 FY’24 reached ₹2,223 Crore, marking a remarkable 253.4% YoY increase.
• Operating Profit for Q3 FY’24 stood at ₹6,331 Crore, displaying a 10.8% YoY growth.
• Net Interest Income for Q3 FY’24 reached ₹10,293 Crore, exhibiting a 12.1% YoY increase.

4. Financial Performance Growth:

• Total Income of the Bank in Q3 FY’24 was ₹29,962 Crore, with a substantial YoY growth of 16.5%.
• Total Interest Income in Q3 FY’24 amounted to ₹27,288 Crore, reflecting a YoY growth of 21.9%.

5. Operational Efficiency:

• Operating Expenses demonstrated a decline, decreasing from ₹6,801 Crore in Q3 FY’23 to ₹6,636 Crore in Q3 FY’24.

6. Nine-Month Performance:

• For the nine months ending FY’24, Net Profit and Operating Profit increased by 288.0% and 11.1%, respectively, on a YoY basis.
• Net Interest Income and Total Income for the nine months ending FY’24 grew by 18.9% and 25.6%, respectively, YoY.

Business Performance Metrics- Profitability and Efficiency:

1. Global Yield on Advances:

• Improved YoY by 122 bps to 8.45% in Q3 FY’24 and 133 bps to 8.22% in 9M FY’24, compared to 7.23% in Q3 FY’23 and 6.89% in 9M FY’23, respectively.

2. Cost of Deposits:

• Global Cost of Deposits increased YoY by 81 bps to 4.96% in Q3 FY’24 and 90 bps to 4.85% for 9M FY’24.

3. Yield on Investment:

• Global Yield on Investment improved YoY by 18 bps to 6.76% in Q3 FY’24 and 30 bps to 6.78% for 9M FY’24.

4. Operational Efficiency Indicators:

• Business per employee improved to ₹23.08 Crore in December’23 from ₹20.55 Crore in December’22.
• Business per branch improved to ₹220.51 Crore in December’23 from ₹200.74 Crore in December’22.
• Net profit per employee increased to ₹9.16 lakhs in Q3 FY’24 from ₹2.54 lakhs in Q3 FY’23.
• Net profit per branch improved to ₹87.47 lakhs in Q3 FY’24 from ₹24.83 lakhs in Q3 FY’23.

Additional Check: Punjab National Bank Share Price

Asset Quality and Capital Adequacy:

1. Capital Adequacy Ratios (CRAR):

• CRAR stood at 14.63% as of December’23, with Tier-I at 11.73%, Tier-II at 2.90%, and CET-1 at 9.86%.
• Risk Weighted Assets totaled ₹7,37,201 Crore as of December’23.

2. Asset Quality Metrics:

• Gross Non-Performing Assets (GNPA) reduced to ₹60,371 Crore as of December’23 from ₹83,584 Crore as of December’22, marking a YoY decline of ₹23,213 Crore.
• Net Non-Performing Assets (NNPA) decreased to ₹8,816 Crore as of December’23 from ₹26,363 Crore as of December’22, indicating a YoY decline of ₹17,547 crore.
• Provision Coverage Ratio (PCR) Excluding TWO improved by 1694 bps YoY to 85.40% in December’23 from 68.46% in December’22.

Priority Sector Achievements:

1. PMJDY accounts increased to 491 Lakhs as of December’23 from 450 Lakhs in December’22.

2. Priority Sector Advances exceeded the National Goal, standing at 43.45% of ANBC.

3. Agriculture advances exceeded the National Goal, reaching 19.89% of ANBC.

4. Credit to Small & Marginal Farmers, Weaker Sections, and Micro Enterprises surpassed respective National Goals.

Financial Inclusion and Digital Initiatives:

1. Number of Digital Transactions increased to 461 Lakhs during 9M FY’24, marking a 58% YoY growth.

2. Internet Banking Services (IBS) users increased to 414 Lakhs as of December’23, recording 9% YoY growth.

3. Total Digital Loan Disbursed during the quarter improved to ₹2,312 Crore as of December’23 from ₹1,530 Crore as of September’23, registering a growth of ₹782 Crore on a QoQ basis.

4. The bank launched PNB Rupee Wallet App – Central Bank Digital Currency mobile app for customers.

5. Online Locker Agreement initiation for customers through a tie-up with NeSL.

6. Facility for application of PMJJBY & PMSBY using Jan Suraksha API through PNB One/Retail IBS initiated by the bank.

About Punjab National Bank

Punjab National Bank (PNB) is one of the oldest and largest public sector banks in India. It was founded in 1894 by Lala Lajpat Rai and other prominent leaders of the Swadeshi movement, with the aim of providing banking services to the Indian masses. PNB offers a wide range of products and services for personal and corporate customers, such as loans, cards, deposits, insurance and digital banking. PNB has over 180 million customers, 12,248 branches, and 13,000+ ATMs across the country. PNB is also involved in various social initiatives, such as financial inclusion, rural development, women empowerment, and environmental sustainability.

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Sources: 

https://www.bseindia.com/xml-data/corpfiling/AttachLive/d937feb3-e018-4a3f-859d-2cdb448465a1.pdf