Punjab National Bank Q4FY24 PAT soars 160% YoY to Rs 3,010 cr; NII grows 9% YoY to Rs 10,363 cr

Sequentially, the bank’s net profit grew by 35.4% to Rs 3,010 crore in Q4FY24 from Rs 2,223 crore in Q3 FY24.

For the entire FY24, PNB’s net profit rose to Rs 8,245 crore recording a robust growth of 228.8% against Rs 2,507 crore posted during FY23.

The bank’s Board of Directors have recommended a dividend of Rs 1.50 per equity share (75%) for the year ended March 31, 2024 subject to requisite approvals.

Return on Assets (RoA) improved to 0.77% in Q4 FY24 from 0.58% in Q3 FY24 and 0.32% in Q4 FY23.

RoA improved Y-o-Y by 36 bps to 0.54% in FY24 against 0.18% recorded in FY23. Return on Equity (RoE) improved to 16.48% in Q4 FY24 from 12.45% in Q3 FY24  and 7.11% in Q4 FY23.

RoE improved by 772 bps to 11.66% in FY24 from 3.94% in FY23.

Net Interest Income (NII) increased to Rs 10,363 crores in Q4FY24 from Rs 10,293 crores in Q3FY24 and Rs 9,499 crores in Q4FY23 showing an improvement of 9.1% on Y-o-Y basis.

During FY24, NII rose by 16.2% to Rs 40,083 crores from Rs 34,492 crores in FY23.

Global Net Interest Margin increased by 3 bps from 3.06% in FY23 to 3.09% in FY24.

Operating profit increased by 9.4% on Y-o-Y basis to Rs 6,416 crores in Q4 FY24  from Rs 6,331 crores in Q3 FY24  and Rs 5,866 crores in Q4 FY23.

Operating profit rose by 10.7% to Rs 24,931 crores in FY24  from Rs 22529 crores in FY23.

Credit Cost improved by 91 bps from 1.72% in Q4 FY23 to 0.81% in Q4 FY24 and by 63 bps from 2.03% in FY23 to 1.40% in FY24.

GNPA ratio improved by 301 bps on Y-o-Y basis to 5.73% as of March’24 from 8.74% as on March 2023.

NNPA ratio improved by 199 bps from 2.72% as on March 2023 to 0.73% as on March’24. Provision Coverage Ratio (including TWO) improved by 849 bps on Y-o-Y basis to 95.39% as on March’24. Provision Coverage Ratio (Excluding TWO) improved by 171 bps to 87.9% from 70.8% in March 2023.

Slippage ratio improved Y-o-Y by 159 bps to 0.72% in FY24 from 2.31% in FY23.

Global Business grew by 8.6% on Y-o-Y basis to Rs 23,53,038 crores as on March’24 from Rs 21,65,844 crores as on March 2023.

Global Deposits registered a growth of 6.9% to Rs 13,69,713 crores as on March 2024 from Rs 12,81,163 crores as on March 2023.

Global Advances increased by 11.2% on Y-o-Y basis to Rs 9,83,325 crores as on March 2024 from Rs 8,84,681 crores as on March 2023.

CD Ratio stands at 71.8% as on March 2024 as against 69.1% in March 2023 and 73.1% in Dec 2023.

In terms of Deposits, Savings Deposits increased to Rs 4,80,298 crores registering a Y-o-Y growth of 3.5%.

Current Deposits grew by Rs 3,565 crores as on March’24 to Rs 72,201 crores on Quarter-on-Quarter basis. CASA Deposits increased to Rs 5,52,499 crores recording a Y-o-Y growth of 2.7%.

CASA Share of the bank stands at 41.44% as on March’24. Retail Term Deposit (less than 2 Crores) witnessed a growth of 9.5% on Y-o-Y basis to Rs 5,62,705 crores in March’24.

As for Advances, total retail credit increased by 12.6% to Rs 2,22,574 crores in March 2024. The bank grew impressively under Core Retail recording a Y-o-Y growth of 15.2%.

Within Core Retail Credit - Housing Loan grew by 14.5% to Rs 93,694 crores, Vehicle loan posted a growth of 25.6% to reach Rs 20,692 crores, and Personal

Loan increased by 14.4% to Rs 20,766 crores. Agriculture Advances grew by 11.3% on Y-o-Y basis to Rs 1,58,188 crores. MSME Advances increased Y-o-Y by 7.0% to Rs 1,39,288 crores in March’24.

On Asset Quality, Gross Non-Performing Assets (GNPA) declined by Rs 20,985 crores to Rs 56,343 crores as on March 2024 from Rs 77,328 crores as on March 2023.

Net Non-Performing Assets (NNPA) declined by Rs 15,786 crores from March 2023 to Rs 6,799 crores as on March 2024. Net Slippages declined by Rs 8646 crores from Rs 14198 crore in FY23 to Rs 5552 crores in FY24 .

On Profitability, Total Income of the bank was booked at Rs 32,361 crores for Q4 FY24  and Rs 1,20,285 crores for FY24 , recording a growth of 18.7% and 23.6% respectively on Y-o-Y basis.

Total Interest Income of the bank was Rs 28,113 crores for Q4 FY24  and Rs 1,06,902 crores for FY24 , registering a Y-o-Y growth of 17.9% and 25.6% respectively.

Fee based income recorded a Y-o-Y growth of 8.4% from Rs 5,612 crores in FY23 to Rs 6,084 crores in FY24 .

In terms of Efficiency/Productivity Ratio, Domestic Net Interest Margin stands at 3.25% in Q4 FY24 .

Global Yield on Advances improved Y-o-Y by 50 bps to 8.44% in Q4 FY24  and by 112 bps to 8.28% in FY24 .

Business per employee improved to Rs 23.84 crores in March’24 from Rs 21.64 crores in March 2023 and Rs 23.08 crores in Dec 2023.

Business per branch improved to Rs 225.25 crores in March’24 from Rs 209.53 crores in March 2023 and Rs 220.51 crores in Dec 2023.

Net profit per employee improved to Rs 8.61 lakhs in FY24 from Rs 2.57 lakhs in FY23. Net profit per branch improved to Rs 81.33 lakhs in FY24 from Rs 24.88 lakhs in FY23.

The bank’s CRAR increased to 15.97% as on March’24 from 15.50% as on March 2023 registering an improvement of 47 bps.

Tier-I was at 13.17% (CET-1 improved to 11.04% from 9.86% as at Dec 2023 and AT1 improved to 2.13% from 1.87% as at Dec 2023) and Tier-II at 2.80% as on March’24.

Under priority sector achievement, Priority Sector Advances exceeded the National Goal of 40% and stands at 40.57% of ANBC. Agriculture advances exceeded the National Goal of 18% and stands at 18.27% of ANBC.

Credit to Small & Marginal Farmers exceeded the National Goal of 10% and stands at 10.09% of ANBC.

Credit to Weaker Sections surpassed the National Goal of 12% and stands at 13.57% of ANBC. Credit to Micro Enterprises surpassed the National Goal of 7.50% and stands at 8.16% of ANBC.

In terms of Financial Inclusion, PMJDY account increased to 5 crores 5 Lakhs as on March’24 from 4 crores 59 Lakhs in March 2023.

Enrolments under PMJJBY, PMSBY & APY in March 2024 stood at 63.82 lakhs, 254.54 lakhs and 38.53 lakhs respectively.

The Number of Digital Transactions increased to 659 Crore during FY24 from 408 Crore during FY23 registering a growth of 62% on Y-o-Y basis.

Internet Banking Services (IBS) users increased to 423 lakhs as on March 2024 recording a growth of 8% Y-o-Y basis from 392 Lakhs as on March 2023.

Total Digital Loan Disbursed improved by Rs 4,464 crore to Rs 8,588 crore as on March 2024 from Rs 4,124 crore as on March 2023.

Facility for Digital Education loan and Digital Vehicle Loan through PNB One has commenced in the bank.

As on 31st March 2024, the bank has 10,138 branches including 2 International Branches.

The distribution of branches is Rural: 3,927 branches (39%), Semi-Urban: 2,484 branches (24%), Urban: 2,001 branches (20%) and Metro: 1,724 branches (17%). The bank also has 12,131 ATMs and 33,614 BCs as part of its distribution network.