PNB’s fourth quarter standalone net profit up 477%

PNB’s financial performance for Q4 FY23 reflects its strong momentum and resilience amid a challenging economic environment and comes a day after the country’s largest bank State Bank of India delivered a blockbuster performance, posting an all-time high profit. reports. 50,232 crore in FY23 and 16,695 crore in Q4.

PNB’s operating profit 5,866 crore during the quarter, representing a growth of 11.4% year-on-year. Moreover, its Net Interest Income witnessed a significant growth of 30.05% YoY 9,499 crore in Q4 FY23.

An encouraging sign for PNB is the improvement in its key financial indicators. The Bank’s Global Net Interest Margin (NIM) increased by 48 basis points to 3.24% in Q4 FY23 from 2.76% in Q4 FY22. This development indicates enhanced profitability and effective management of interest rate spread.

Additionally, PNB made significant progress in asset quality, with gross non-performing assets (GNPA) ratio increasing by 304 basis points to 8.74% by March 2023, as against 11.78% in March 2022. The net non-performing assets (NNPA) ratio also improved, declining by 208 basis points to 2.72% by March 2023.

PNB’s focus on risk management is evident in its provision coverage ratio, which includes technical write-offs (two). A significant improvement of 530 basis points in the ratio from 81.60% in March 2022 to 86.90% by March 2023. This indicates the bank’s efforts to increase its provisioning for potential loan losses and strengthen its asset quality.

Further, PNB’s credit cost witnessed a decline of 73 basis points in Q4 FY23 to 1.72% in Q4 FY23, reflecting effective control over credit risk and loan defaults.

The Bank’s global business also showed positive growth with an increase in 2,34,522 crore (12.14%) YoY, reaching 21,65,844 crore by March 2023 as compared to 19,31,322 crores in March 2022. PNB’s global deposits grew by 11.77% 12,81,163 crore by March 2023, while global advances grew by 12.68% YoY 8,84,681 crores.

PNB’s performance in managing risk-weighted assets (RAM) has been remarkable, as the RAM share has increased by 408 basis points to 55.31% by March 2023.

For the full year, Punjab National Bank’s net profit fell by 27% 2507 cr. it was 3,456 crore in FY2022.

The Bank’s strong financial results are indicative of its strategic focus on growth, profitability and risk management. PNB’s efforts to strengthen asset quality, improve provision coverage and sustain healthy business growth have contributed to its impressive performance. With its positive trajectory, PNB continues to strengthen its position as a major player in India’s banking sector.