PNB Q1 results : Net profit rises 307% to Rs 1,255 cr, asset quality improves

Punjab National Bank Ltd (PNB) on Wednesday reported a significant surge in its standalone net profit for the quarter ended June 2023. The bank's net profit jumped by 307 per cent to Rs 1,255.4 crore compared to Rs 308.4 crore in the same quarter last year. The net profit rose 8% on sequential basis.

During the June quarter, PNB's asset quality improved. Gross non-performing assets (GNPAs) reached 7.73 per cent as compared to 8.74 per cent in the previous quarter and 11.27 per cent in the June quarter of the previous year. Similarly, the net NPAs also decreased to 1.98 per cent from 2.72 per cent in the previous quarter and 4.28 per cent in the June quarter of the previous year.

The bank's total income witnessed a substantial rise of 34.2 per cent to Rs 28,579.27 crore in the June quarter, marking a significant increase from Rs 21,294.03 crore reported in the same period last year.

PNB's Provision Coverage Ratio (including technical write-offs) made substantial progress, improving by 679 bps YoY to 89.83 per cent as of June 2023 from 83.04 per cent in June 2022. "Excluding technical write-offs, the Provision Coverage Ratio (PCR) displayed impressive growth, improving by 1105 bps YoY to 75.84 per cent in June 2023 from 64.79 per cent in June 2022," said PNB in a stock exchange filing.

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The bank's diligent risk management practices were evident in the slippage ratio, which improved to 1.19 per cent in Q1FY24 from 3.75 per cent in Q1FY23, it said. Furthermore, the credit cost declined by 47 bps YoY to 1.99 per cent in Q1FY24.

PNB's global business witnessed a substantial 14.3 per cent YoY growth, reaching Rs 22 lakh crore as of June 2023, compared to Rs 19.36 lakh crore in June 2022. Global deposits also showed a significant increase, growing by 14.18 per cent YoY to nearly Rs 13 lakh crore as of June 2023. Similarly, global advances demonstrated noteworthy growth, rising by 14.58 per cent YoY to Rs 91.6 lakh crore as of June 2023.

In efforts to fund business growth, PNB recently raised Rs 3,090 crore from Basel III compliant Tier-II capital bonds, carrying a coupon rate of 7.74 per cent per annum, as disclosed in a regulatory filing.

Moreover, the bank also infused Rs 72.82 crore in its Bhutan subsidiary, Druk PNB Bank Ltd, through a rights issue, where PNB retained 51 per cent of the subsidiary after participating in the issue.

As of Wednesday at 2:25 pm, PNB's stock was trading 2.4 per cent higher at Rs 62.15 apiece on BSE.