PNB: Upsides capped as strong Q3 show, outlook reflected in valuations

Net interest income grew 12% YoY to Rs 10,300 crore as net interest margins improved 4 basis points QoQ to 3.15%

Punjab National Bank (PNB) reported a healthy Q3FY24. Net profit surged 254 per cent YoY to Rs 2,220 crore, while net interest income (NII) grew 12 per cent YoY to Rs 10,300 crore as net interest margins (NIMs) improved 4 basis points QoQ to 3.15 per cent. The loan book grew at 15 per cent YoY (3 per cent QoQ) to Rs 9.2 trillion. Retail loans declined 1.8 per cent QoQ. Deposit growth was relatively low at 9 per cent YoY (1 per cent QoQ) to Rs 13 trillion.

The credit deposit ratio is still low at 69