In This Article:
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Growth Business: Increased by 11.9% YOY to 25.20 trillion.
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Gross Deposit: Increased by 11.3% to 14.58 trillion.
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Net Interest Income: Improved to 10,517 crore, a growth of 6%.
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Operating Profit: Increased to 6,853 crore, a growth rate of over 10%.
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Net Profit: Increased to 4,303 crore, a growth rate of 145% YOY.
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Gross NPA: Reduced from 65,563 crore to 47,582 crore; percentage reduced from 6.96% to 4.48%.
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Net NPA: Reduced from 13,114 crore to 4,674 crore; percentage improved from 1.47% to 0.46%.
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Credit Cost: Reduced to 0.08% from 1.31% in September 2023.
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Total Capital: Increased to 16.36% from 15.79% in June 2024.
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Cost to Income Ratio: Increased to 54.58% from 52% in September 2023.
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Advances Growth: 12.8% YOY, with a growth of 14.62% in advances.
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CASA: Improved to 5.56 trillion with a growth rate of 3.4%.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Punjab National Bank (BOM:532461) reported a significant increase in net profit, rising by 145% year-over-year to 4,303 crore.
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The bank's net interest income improved by 6% from the previous year, reaching 10,517 crore.
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There was a notable reduction in gross non-performing assets (NPAs), which decreased from 6.96% in September 2023 to 4.48% in September 2024.
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The bank's capital adequacy ratio improved, crossing 16% for the first time in 5 to 10 years, supported by a successful QIP raising 5,000 crore.
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Punjab National Bank (BOM:532461) achieved a strong recovery performance, with total recoveries more than doubling compared to the previous quarter.
Negative Points
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The cost-to-income ratio increased to 54.58% in the September 2024 quarter, partly due to higher provisions for employee benefits.
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There was a slight increase in slippages, with gross slippages rising to 2,181 crore, including a significant account of 425 crore.
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The bank's margins showed some softness, with the net interest margin guidance maintained at 2.9% to 3%, despite room for improvement.
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Employee costs increased significantly due to provisions related to AS 15, impacting overall expenses.
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The liquidity coverage ratio (LCR) is expected to dip by 10 to 11% due to revised guidelines, potentially affecting liquidity management.
Q & A Highlights
Q: Congratulations on a strong quarter. Could you elaborate on the contingent provisions made this quarter and your thoughts on future credit costs? A: We have made a floating provision of ?354 crore for NPAs this quarter, with a total of ?500 crore in floating provisions. Given our current provisioning levels and the behavior of new underwriting, we do not foresee the need for additional provisions. Our guidance for credit costs has been revised to 0.25% to 0.30% for the year, down from the initial 1%. Mr. Atul Kumar Goel, MD & CEO