Punjab National Bank Q1 profit more than doubles to Rs 3,252 crore

PNB Q1 profit: Punjab National Bank (PNB) reported a significant increase in standalone net profit for the June quarter of FY25, more than doubling to Rs 3,252 crore. This growth was driven by a decline in bad loans and an improvement in interest income.

The state-owned bank had recorded a net profit of Rs 1,255 crore in the same period last year.

PNB's total income for the quarter rose to Rs 32,166 crore, up from Rs 28,579 crore, as stated in a regulatory filing. Interest income also saw an increase, reaching Rs 28,556 crore from Rs 25,145 crore in the year-ago quarter.

The bank's gross Non-Performing Assets (NPAs) decreased to 4.98 per cent of gross advances by June 2024, compared to 7.73 per cent in the same quarter last year. Net NPAs also declined, falling to 0.60 per cent from 1.98 per cent.

As a result of the reduced NPAs, provisions for bad loans dropped significantly to Rs 792 crore in April-June FY25, down from Rs 4,374 crore in the previous year.

On a consolidated basis, PNB reported a net profit of Rs 3,976 crore for the quarter under review, compared to Rs 1,342 crore a year ago. The consolidated financial results include five subsidiaries and 15 associates.

The bank's capital adequacy ratio improved to 15.79 per cent at the end of June 2024, up from 15.54 per cent in the same period last year.

(With PTI inputs.)