PNB reported its Q4 results: Net Profit jumped 160%

Punjab National Bank is an Indian government public sector bank based in New Delhi, The Public Sector Bank has reported its earnings for the March quarter today, Net profit has surged by 160% and the lender has also announced its highest dividend payout in the nine years, the asset quality has also improved for the bank. 

Punjab National Bank Q4 results

For the Q4 FY 2023-24, The public sector bank has reported a net profit of Rs.3010.27 crores,  a surge of 160% as compared to a net profit of Rs.1,158.6 crores reported in Q4 FY 2022-23, The Net interest income for the bank surged by 9.1% to Rs.10,363 crores as compared to  Rs.9,498.8 crores in Q4 FY 2022-23.

The Asset quality of the bank has shown improvement in this quarter, The Gross NPA for this quarter came down to Rs.56,343 crores from Rs.60,371.4 crores in Q4 FY 2022-23, The Net NPA for the quarter stood at Rs.6,798 crores from Rs.8,815.9 crores in Q4 FY 2022-23. 

Deposits and Advances

Savings Deposits of the bank have increased to Rs.4.80 Lakh crore, registering a year-on-year growth of 3.5%, The Current Deposits for the quarter have grown by Rs.3,565 crores. CASA deposits have increased to Rs.5.53 Lakh crore recording a year growth of 2.7%.

Under Core Retail, the bank demonstrated impressive year-on-year growth of 15.2%. Housing loans surged by 14.5% to Rs.93,694 crore, vehicle loans by 25.6% to Rs 20,692 crore and personal loans by 14.4% to Rs.20,766 crore. Agriculture Advances rose by 11.3% to Rs.1.58 lakh crore, while MSME Advances increased by 7.0% to Rs.1.39 lakh crore in March 2024.

CEO in Post-results press conference

During a post-results press conference, Atul Kumar Goel, the  MD and CEO of Punjab National Bank, said the improvement in CAR is due to the profits gained and the increase in tier-1 capital in Q3. He forecasted that the credit cost would be under 1% in FY25. Additionally, Goel also indicated that the bank anticipates deposit growth to be around 9-10% and credit growth to be between 11-12% in FY25.

Conclusion The key parameters like deposits, advances, asset quality and profitability have all shown improvement under Q4 FY  2023-24. The profit has more than doubled on the back of lower provisions. The PSU Bank has also announced a record dividend of Rs.1.50 per share. The stock has closed at Rs.121.65 a piece today.

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