Punjab National Bank (PNB) Q3 24/25 earnings summary

Executive summary

• Net profit for the nine months ended December 2024 was ₹12,063 crore, up 130.5% year-over-year; Q3 net profit was ₹5,408 crore, up 102.8% year-over-year.

• Asset quality improved: GNPA reduced to 4.09% (from 6.24% YoY), net NPA to 0.41% (from 0.96% YoY), and PCR rose to 96.77%.

• Digital transactions accounted for 91% of total transactions in Q3 FY25, up from 88% a year ago.

• Return on Assets for Q3 FY25 was 1.03%, and Return on Equity was 19.22%.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved by the Board on January 31, 2025.

Financial highlights

• Net interest income for nine months was ₹32,025 crore, up 7.8% year-over-year; Q3 NII was ₹11,032 crore.

• Operating profit for nine months was ₹20,055 crore, up 8.3% year-over-year; Q3 operating profit was ₹6,621 crore, up 4.6% year-over-year.

• Total income for Q3 FY25 grew 16% year-over-year to ₹34,752 crore.

• Cost-to-income ratio for Q3 FY25 stood at 54.16%.

• Other income declined due to muted technical write-off recoveries and negative MTM provisions.

Outlook and guidance

• Credit growth expected to remain in the 13%-14% range, with strong corporate and MSME pipeline; actual YoY growth at 14.79% as of Q3.

• Deposit growth guidance is 9–10%, with actual YoY growth at 15.58%.

• Profitability momentum and NIM in the 2.9%-3% range expected to continue, with ongoing repricing of corporate book.

• Recovery target for FY25 is ₹18,000 crore, with Q4 expected to contribute ₹5,000-6,000 crore.

• Guidance for FY26 on margins and growth to be provided after budget and MPC announcements.