Watch · Euros Today
State-run Punjab National Bank Ltd. (PNB) reported results for the September quarter after market hours on Friday, October 16. The lender's profitability and core income, both grew in double digits from last year. However, slippages have increased on a sequential basis, even as asset quality improved.
Net profit for PNB stood at ₹5,532 crore in the September quarter, which is 12.8% higher compared to the same quarter last year's figure of ₹4,903 crore. PNB's profitability grew despite a 17% year-on-year drop in the lender's other income to ₹3,600 crore from ₹4,342 crore. Profitability this time was aided by a sharp drop in provisions, which stood at ₹97.27 crore, compared to ₹541 crore in the June quarter.
Net Interest Income, or Core Income earned by the lender increased by 10.8% year-on-year to ₹11,601 crore from ₹10,468 crore. PNB's asset quality improved on a sequential basis with Gross NPA at 2.55% from 2.78% in June, while Net NPA improved to 0.25% from 0.28% last quarter. In absolute terms, Gross NPA stood at ₹34,190 crore from ₹35,380 crore earlier, while Net NPA stood at ₹3,313.2 crore from ₹3,433.2 crore.
Slippages though, saw an increase on a sequential basis, with fresh slippages rising to ₹2,395 crore from ₹2,080 crore sequentially. PNB's global advances at the end of the September quarter grew by 14.7% on a year-on-year basis to ₹13.41 lakh crore. Global deposits saw growth of 9.9% on a year-on-year basis to ₹17.77 lakh crore.
PNB's domestic Net Interest Margin (NIM) at the end of the quarter stood at 2.74% from 2.72% last year, while cost of funds saw a decline to 4.34% from 4.57% last year and 4.36% in the June quarter. The lender has also maintained its guidance for financial year 2027 across parameters. PNB Metrics As Of H1FY27 Vs Guidance Metric Guidance As Of H1 FY27 Credit Growth 12-13% 14.7% Deposit Growth 9-10% 9.9% Operating Profit 9-10% 5.2% NII Growth 7% 6.4% Total Recoveries > ₹13,000 Crore ₹5,594 Crore Credit Cost Below 0.4% 0.25% Gross NPA < 2.5% 2.55% Net NPA < 0.3% 0.25% Investor Presentation At the end of the first half of the financial year, PNB's credit growth stood at 14.7% year-on-year, higher than their guidance of 12% to 13% growth.
Deposits have grown 9.9% from last year for the first half, which is at the higher end of the 9% to 10% range guided by the management. Net Interest Income though, has grown 6.4% during the first half, lower than the 7% guidance of the management, while operating profit growth of 5.2% is also lower than the guided range of 9% to 10%. PNB expects recoveries of over ₹13,000 crore during the financial year, of which, it has managed to collect ₹5,594 crore during the first half of the year.
Shares of Punjab National Bank ended 1.1% higher on Friday ahead of the results announcement at ₹116.3. The stock is down 6.1% so far this year. Tags Home / Market News / PNB Q2 Results: Lower provisions aid profitability, slippages rise from June quarter
Source: CNBC TV18
