Punjab National Bank (PNB) Q1 24/25 earnings summary

Executive summary

• Net profit surged 159% year-over-year to ₹3,252 crore in Q1 FY25, with ROA at 0.82% and ROE at 16.82%.

• Operating profit rose 10.3% YoY to ₹6,581 crore, and net interest income increased 10.2% YoY to ₹10,476 crore.

• Asset quality improved: gross NPA reduced to 4.98% (down from 7.73% a year ago), net NPA at 0.60% (down from 1.98%), and PCR reached 95.90%.

• Global business grew 10% YoY to ₹24.39 trillion, with deposits at ₹14.08 trillion (8.5% growth) and credit at ₹10.28 trillion (12.2% growth YoY, 4.6% sequentially).

• Board approved and published reviewed standalone and consolidated financial results for the quarter ended June 30, 2024.

Financial highlights

• Total income for Q1 FY25 was ₹32,167 crore, up 12.5% YoY; operating income grew 8.9% YoY.

• CASA ratio at 42%, with savings bank growth positive both year-over-year and sequentially.

• Cost-to-income ratio improved to 53.28% from 56.09% last quarter, aided by lower wage revision provisions.

• NIM at 3.07% (annualized), cost of deposits at 5.09%, yield on advances at 8.44%.

• Book value per share increased to ₹93.87; net profit per employee rose to ₹13.66 lakh.

Outlook and guidance

• FY25 guidance: credit growth 11–12%, deposit growth 9–10%, NIM ~3.07%, GNPA revised to ~4%, NNPA below 0.5%.

• Credit cost guidance lowered to 0.5% (from 1%); slippage ratio expected below 1%.

• ROA guidance remains at 0.8%, with expectation to reach 1% by year-end.

• Recovery target for FY25 set at ₹18,000 crore, with ₹3,000 crore expected from NCLT recoveries.

• CASA share target around 42%; actual at 40.08% in Q1.