PNBs Q4 Standalone Net Profit Soars 477%, Driven By Impressive Financial Performance

PNB’s financial performance for Q4 FY23 reflects its robust momentum and resilience amidst a challenging economic environment and comes a day after country largest bank State Bank of India delivering a blockbuster performance reporting all time high profit of ₹50,232 crore in FY23 and ₹16,695 crore in Q4.

PNB’s operating profit stood at ₹5,866 crore during the quarter, representing an 11.4% year-on-year growth. Furthermore, its net interest income witnessed a significant increase of 30.05% YoY, amounting to ₹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) rose by 48 basis points YoY to 3.24% in Q4 FY23, up from 2.76% in Q4 FY22. This development indicates enhanced profitability and effective management of interest rate spreads.

Additionally, PNB made notable progress in asset quality, with the gross non-performing assets (GNPA) ratio improving by 304 basis points YoY to 8.74% as of March 2023, compared to 11.78% in March 2022. The net non-performing assets (NNPA) ratio also showed improvement, declining by 208 basis points YoY to 2.72% as of March 2023.

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

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

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

PNB’s performance in managing risk-weighted assets (RAM) is noteworthy, as the RAM share improved by 408 basis points YoY to 55.31% as of March 2023.

For the full year, Punjab National Bank’s net profit fell 27% to ₹2507 crore. It was ₹3,456 crore in fiscal 2022.

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