Punjab National Bank Q3 earnings: Net profit rises three fold to Rs 2,222 crore, stock gains

Shares of Punjab National Bank Ltd (PNB)  rose over 2% in the afternoon session after the lender reported a 253% rise in consolidated net profit in Q3 from the year-ago period. Net profit rose to Rs 2222.8 crore in the December 2023 quarter against Rs 628.88 crore in the December 2022 quarter. Net interest income rose 12.13 % YoY to Rs 10,293 crore in Q3 FY24. Return on Assets (RoA) improved YoY by 41 bps to 0.58% in Q3 FY’24. Total income rose 16% to Rs 29,962 crore in the December 2023 quarter.

Operating expenses fell to Rs 6,636 crore in the last quarter against Rs 6,801 crore as on Q3 FY’23.

Operating profit climbed 10.75% to Rs 6330.71 crore in Q3 against Rs 5715.90 crore in the year-ago period. PNB stock rose over 2 percent to Rs 104.65 against the previous close of Rs 102.14 on BSE.  Market cap of the bank stood at Rs 1.13 lakh crore. 

Net profit margins climbed to 7.42% in Q3 against 2.44% in the December 2022 quarter.

 Debt to equity ratio fell to 0.85 in the last quarter against a ratio of 1.00 in the December 2022 quarter. Gross NPAs in percentage terms slipped to 6.24% in Q3 against 9.76% in the year-ago period.

In rupee terms, gross NPAs fell to Rs 60,371.38 crore in the December 2023 quarter compared to Rs 83,583.87 crore in Q3 of the previous fiscal. Net NPAs also slipped to Rs 8815.88 crore in Q3 of the current fiscal against Rs 26,363.13 crore in the December 2022 quarter.

Earlier, the PNB stock opened higher at Rs 102.58 on BSE. The stock has a beta of 0.7, indicating low volatility in a year.

The banking stock has gained 95.60% in a year and risen 7.29% this year. Total 49.82 lakh shares of the firm changed hands amounting to a turnover of Rs 51.24 crore.

In terms of technicals, the relative strength index (RSI) of PNB stock stands at 63.4, signaling it's trading neither in the overbought nor in the oversold territory. PNB shares are trading higher than the 5 day, 10 day, 20 day, 30 day 50 day, 100 day, 150 day and 200 day moving averages. 

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