PNB Share Price to Come in Focus on Thursday After FY25 Results

PNB’s share price dipped 0.50% to close at ₹94.00 on Wednesday. The company has reported a strong financial performance for the quarter and fiscal year ending March 31, 2025.

The bank has posted a net profit of ₹4,567 crore in Q4 FY25, up 51.7% from ₹3,010 crore in the same quarter last year. For the full financial year, net profit jumped by 101.7% to ₹16,630 crore compared to FY24.

145% Dividend Announcement on PNB Share Price

The Board of Directors has proposed a dividend of ₹2.90 per equity share (145% of the ₹2 face value), subject to approval at the AGM on June 27. The board also approved plans to raise up to ₹8,000 crore in capital through Basel III-compliant bonds during FY26. This includes ₹4,000 crore each in Additional Tier-I and Tier-I bonds.

Steady Growth in Income and Operating Profit

PNB’s total income in Q4 FY25 was ₹36,705 crore, a 13.4% increase year-on-year. For the full year, income rose by 14.8% to ₹1,38,070 crore. The bank’s interest income grew by 13.8% in Q4 and 13.9% in FY25. Non-interest income also saw healthy growth—11.0% in Q4 and 21.9% for the year.

Operating profit rose to ₹6,776 crore in Q4 (up 5.6% YoY) and ₹26,831 crore in FY25 (up 7.6% YoY). Net Interest Income (NII) increased to ₹10,757 crore in Q4 and ₹42,782 crore for the year, marking a 6.7% YoY rise.

Improved Returns and Asset Quality

Return on Assets (RoA) rose from 0.77% to 1.02% in Q4 and improved from 0.54% to 0.97% for the year. Return on Equity (RoE) jumped from 16.48% to 19.23% in Q4 and from 11.66% to 19.33% in FY25.

PNB made significant progress in improving asset quality. Gross Non-Performing Assets (GNPA) dropped from 5.73% to 3.95%, and Net NPA fell from 0.73% to 0.40%. In rupee terms, GNPA reduced by ₹12,261 crore, while NNPA reduced by ₹2,508 crore. Provision Coverage Ratio improved to 96.82%, up 143 basis points.

Growth in Deposits and Retail Credit

The bank’s CASA deposits rose 3.8% YoY to ₹5,73,543 crore. Savings and current deposits also grew steadily. Term deposits increased sharply by 21.5% YoY to ₹9,93,080 crore. Retail credit grew by 16.5% YoY to ₹2,59,363 crore.

Large Network and Outreach

PNB has a wide presence with 10,189 domestic branches, two international branches, and over 55,000 service touch points. Nearly 63.4% of its branches are in rural and semi-urban areas.

Conclusion

Punjab National Bank has shown strong financial performance in FY25 with higher profits, improved asset quality, and growing customer deposits. The bank is also preparing for future growth with capital raising plans and a focus on rural outreach.

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