PNB net profit surges 137% to ₹4,714 cr in Q2; stock rises 6%

State owned lender Punjab National Bank (PNB) reported a  137% YoY rise in consolidated net profit for the quarter ending September 30, 2024 (Q2 FY25), reaching ₹4,714 crore, compared to ₹1,990 crore in the same period last year. On a standalone basis, the profit jumped 2.5 times year-on-year (YoY) to ₹4,303.5 crore as compared to ₹1,756.1 crore in the same quarter the previous year.

Following the announcement, shares of PNB surged 6.4% to ₹101.95 apiece on the BSE. The stock opened marginally higher today at ₹96.05 against the previous close price of ₹95.80. Over the past month, the stock has dipped 7.69%, dropped 27.89% in the last six months. On the year-to-date (YTD), the counter surged 1.20%.

At the time of reporting, PNB shares were trading 2.97% higher, closing at ₹98.65 apiece on the BSE, with a market cap of ₹1,13,377.89 crore.

PNB’s gross non-performing assets (NPA) ratio improved to 4.48% by the end of September, down from 6.96% in the same quarter last year, while the net NPA ratio also dropped to 0.46% from 1.47% in the same quarter of the previous year.

In absolute terms, the bank’s gross non-performing assets (GNPA) dropped by 27% to ₹47,582 crore as of September 2024, down from ₹65,563 crore in September 2023. Likewise, net non-performing assets (NNPA) decreased by 64% to ₹4,674 crore during the same period, compared to ₹13,114 crore a year earlier.

Additionally, the bank’s Return on Assets (ROA) rose to 1.02% in the Q2 FY25, up from 0.46% in Q2 FY24. Return on Equity (ROE) also strengthened, reaching 19.91% in Q2 FY25 compared to 10.15% in Q2 FY24.

The state bank’s global business increased by 11.93% YoY, reaching ₹25,20,246 crore as of September 2024, up from ₹22,51,631 crore in September 2023. Similarly, global deposits saw an 11.33% YoY growth, rising to ₹14,58,342 crore as of September 2024 from ₹13,09,910 crore in the previous year. Global advances grew by 12.76% YoY, reaching ₹10,61,904 crore as of September 2024, up from ₹9,41,721 crore in September 2023.

PNB’s capital adequacy ratio under Basel III also strengthened, with the Common Equity Tier 1 (CET1) reaching 11.59% as of September 2024, up from 10.23% in September last year.