On Wednesday, Punjab National Bank (PNB), a state-owned bank, recorded an impressive four-fold increase in its standalone net profit, reaching ₹1,255 crore during the April-June quarter. This substantial growth can be attributed to a decline in bad loans and an improvement in interest income.
In the same quarter of the previous year, PNB had reported a net profit of ₹308 crore. The total income for the first quarter of the current fiscal rose to ₹28,579 crore compared to ₹21,294 crore in the corresponding period last year, according to the regulatory filing made by the bank.
The bank’s interest income also saw a notable rise, reaching ₹25,145 crore from ₹18,757 crore in the same quarter of the previous year. Additionally, the gross Non-Performing Assets (NPAs) decreased to 7.73 percent of the gross advances by June 2023, a significant decline from the 11.2 percent reported a year ago. Similarly, the net NPA also dropped to 1.98 percent, compared to 4.26 percent in the same period of the previous year.
Due to the improved asset quality, provisions for bad loans decreased to ₹4,374 crore during April-June FY24, in contrast to ₹4,814 crore in the year-ago period.
Looking at the bank’s consolidated performance, it reported a net profit of ₹1,342 crore in the quarter ending in June, a substantial increase from ₹282 crore in the corresponding period of the previous year. The bank’s consolidated financial result includes the figures from its five subsidiaries and 15 associates.
Moreover, the capital adequacy ratio of the bank also witnessed improvement, reaching 15.54 percent at the end of June, compared to 14.62 percent in the year-ago period. This indicates a strengthened financial position for Punjab National Bank.
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