Punjab National Bank Reports 14% Rise in Q2 Net Profit, NIM Under Pressure
Punjab National Bank (PNB) reported a 14% year-on-year increase in net profit to ₹4,904.00 crore for Q2. Operating profit rose by 5.5% to ₹7,227.00 crore. Net Interest Income slightly declined by 0.5% to ₹10,469.00 crore, with Net Interest Margin contracting to 2.60%. Asset quality improved with GNPA ratio at 3.45% and NNPA ratio at 0.36%. Global business grew by 10.6% to ₹27,86,673.00 crore. Capital Adequacy Ratio strengthened to 17.19%. The bank aims to maintain growth momentum while focusing on asset quality and expanding retail and MSME loan portfolios.

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Punjab National Bank (PNB), one of India's leading public sector banks, has reported a 14% year-on-year increase in net profit for the second quarter, despite facing pressure on its net interest margin.
Key Financial Highlights
- Net profit rose to ₹4,904.00 crore in Q2, up from ₹4,303.00 crore in the same period last year.
- Operating profit increased by 5.5% year-on-year to ₹7,227.00 crore.
- Net Interest Income (NII) declined marginally by 0.5% to ₹10,469.00 crore compared to Q2 of the previous year.
- Net Interest Margin (NIM) contracted to 2.60% from 2.92% in the same quarter of the previous year.
Asset Quality Improvement
PNB continued to make progress in improving its asset quality:
- Gross Non-Performing Assets (GNPA) ratio improved to 3.45% as of September 30, down from 4.48% a year ago.
- Net Non-Performing Assets (NNPA) ratio decreased to 0.36% from 0.46% in the same period last year.
- Provision Coverage Ratio (PCR) improved to 96.91% from 96.67% year-on-year.
Business Growth
The bank reported solid growth in its business volumes:
- Global business grew by 10.6% year-on-year to ₹27,86,673.00 crore.
- Global deposits increased by 10.9% to ₹16,17,080.00 crore.
- Global advances rose by 10.1% to ₹11,69,592.00 crore.
Capital Adequacy
PNB's capital position remained strong:
- Capital Adequacy Ratio (CAR) stood at 17.19% as of September 30, up from 16.36% a year ago.
- CET-1 ratio improved to 12.75% from 11.59% in the same period last year.
Management Commentary
Atul Kumar Goel, MD & CEO of Punjab National Bank, stated, "Our Q2 results demonstrate the bank's resilience and ability to grow profitably despite a challenging interest rate environment. While we've seen some pressure on our net interest margin, we've managed to offset this through improved operational efficiency and robust growth in our loan book. Our focus on asset quality continues to yield positive results, as evidenced by the significant reduction in our GNPA and NNPA ratios."
Outlook
Looking ahead, PNB aims to maintain its growth momentum while keeping a close watch on asset quality. The bank expects to benefit from the ongoing economic recovery and plans to focus on expanding its retail and MSME loan portfolios.
The bank's ability to navigate the current interest rate scenario and maintain its growth trajectory will be crucial for its performance in the coming quarters.
Historical Stock Returns for Punjab National Bank
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-2.08% | -3.02% | +1.55% | +14.27% | +10.97% | +306.80% |