PNB Q4 result: Profit jumps nearly three-fold to a 16-quarter high

State-owned Punjab National Bank (PNB) reported a 160 per cent annual increase in net profit, reaching a 16-quarter high of Rs 3,010 crore in the fourth quarter (January-March) of the financial year 2023-24, driven by improved core income and a decline in bad loans.

“The profitability we have seen in this quarter is mainly due to a reduction in credit costs. Our Net Interest Income (NII) has improved, along with reductions in slippages and nearly doubled recoveries,” said Atul Kumar Goel, managing director and chief executive officer, during the post-results press conference.

PNB’s Net Interest Income (NII) increased to Rs 10,363 crore in Q4 FY24 from Rs 9,499 crore in Q4 FY23, showing an improvement of 9.1 per cent. During FY24, NII rose by 16.2 per cent to Rs 40,083 crore from Rs 34,492 crore in FY23.

The bank’s operating profit increased by 9.4 per cent year-on-year to Rs 6,416 crore in Q4 FY24, compared to Rs 5,866 crore in Q4 FY23. However, credit costs improved by 91 basis points (bps), from 1.72 per cent in Q4 FY23 to 0.81 per cent in Q4 FY24, and by 63 bps from 2.03 per cent in FY23 to 1.4 per cent in FY24.

In the financial year 2023-24, PNB made recoveries of Rs 22,530 crore, compared to Rs 29,095 crore in FY23. In Q4, it recovered Rs 7,439 crore.

PNB’s Gross Non-Performing Assets (GNPA) declined by Rs 20,985 crore to Rs 56,343 crore as of March 2024 from Rs 77,328 crore as of March 2023. The bank’s Net Non-Performing Assets (NNPA) declined by Rs 15,786 crore from March 2023 to Rs 6,799 crore as of March 2024.

Net slippages declined by Rs 8,646 crore, from Rs 14,198 crore in FY23 to Rs 5,552 crore in FY24.

As of March 31, 2024, the bank has 10,138 branches, including two international branches. The state-owned bank has 3,927 rural branches, 2,484 semi-urban branches, 2,001 urban branches, and 1,724 metro branches. The bank also has 12,131 ATMs and 33,614 business correspondents as part of its distribution network.