 "Punjab National bank")
Public-sector lender Punjab National Bank’s net profit for the July-September quarter (Q2FY24) jumped a whopping 327.14 per cent year-on-year (Y-o-Y) to Rs 1,756 crore owing to a substantial rise in its net interest income (NII) and decline in credit costs.
Sequentially, the Delhi-based bank’s profit went up from Rs 1,255 crore in the quarter ended June (Q1FY24).
The bank’s stock closed 0.5 per cent higher at Rs 69.81 a share on the BSE. Its capital adequacy ratio (CAR) stood at 15.09 per cent, with tier-1 at 12.02 per cent at the end of September.
PNB Managing Director and Chief Executive A K Goel said there was no immediate requirement for capital. The bank has raised Rs 6,090 crore through additional tier-I and tier-II bonds in the first half ended September.
The lender’s NII expanded 29 per cent Y-o-Y to Rs 9,923 crore in Q2. Sequentially, NII rose from Rs 9,544 crore in Q1 of FY24.
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PNB’s net interest margin (NIM) expanded to 3.11 per cent in Q2, compared to 3 per cent in the year-ago quarter. Sequentially, NIM increased from 3.08 per cent in Q1FY24, according to an analyst presentation. The bank has guided for NIM to be about 2.9-3 per cent for FY24.
The deposits worth Rs 1 trillion will get repriced in the coming quarters, impacting the NIM. Bank is focusing on NII, Goel said.
Non-interest income comprising fees, commissions, treasury income, and recoveries declined by 6.4 per cent Y-o-Y to Rs 3,028 crore.
The lender’s provisions for non-performing assets (NPAs) declined to Rs 3,019 crore in Q2, from Rs 3,556 crore in the year-ago period. Sequentially as well, provisions declined from Rs 4,374 crore in Q1FY24.
Advances grew 13.43 per cent Y-o-Y to Rs 9.41 trillion in Q2FY24, the bank said in a statement.
Total deposits increased 9.75 per cent YoY to Rs 13.09 trillion. The share of low-cost deposits — current account and saving account (CASA) — was 42.15 per cent at the end of September, down from 44.91 per cent a year ago.
The asset quality profile improved, with gross NPAs declining to 6.96 per cent in September from 10.48 per cent a year ago. Sequentially, it was down from 7.73 per cent in June 2023.
Net NPAs declined from 3.80 per cent in September to 1.47 per cent in the year-ago month. Sequentially, net NPAs were up from 1.98 per cent in June.
The provision coverage ratio improved to 91.91 per cent in September from 83.96 per cent a year ago.
