Punjab National Bank (PNB) Q4 24/25 earnings summary

Executive summary

• Net profit for FY25 was ₹16,630 crore, more than doubling year-over-year, with Q4 net profit at ₹4,567 crore, up 51.7% YoY, reflecting strong profitability and improved asset quality.

• Global gross business reached ₹26.83 lakh crore as of March 2025, up 14% YoY, with deposits at ₹15.66 lakh crore (+14.4%) and advances at ₹11.17 lakh crore (+13.6%).

• Return on assets for FY25 was 1.02% and return on equity was 19.33%, indicating robust operational efficiency.

• Digital transactions accounted for 94% of total, with significant growth in mobile and WhatsApp banking users; PNB One app users up 115%.

• Dividend per share increased to ₹2.90 for FY25, subject to shareholder approval.

Financial highlights

• Net interest income for FY25 was ₹42,782 crore, up 6.7% YoY; Q4 NII was ₹10,757 crore, up 3.8% YoY.

• Operating profit for FY25 was ₹26,831 crore (+7.6% YoY); Q4 operating profit was ₹6,776 crore (+5.6% YoY).

• Total income for FY25 was ₹1,38,070 crore, up from ₹1,20,285 crore YoY; Q4 total income was ₹36,705 crore (+13.4% YoY).

• Cost-to-income ratio for Q4 FY25 stood at 56.21%, with improved net profit margin.

• Earnings per share for FY25 was ₹14.77 (standalone), up from ₹7.49 YoY.

Outlook and guidance

• FY26 guidance: credit growth 11%-12%, deposit growth 9%-10%, NIM 2.8%-2.9%, gross NPA below 3.75%, net NPA below 0.5%, ROA above 1%.

• Board approved capital raising of up to ₹8,000 crore through Basel III bonds in FY26.

• Dividend payout of ₹2.90 per share recommended, reflecting improved profitability.

• Focus on further improving asset quality, maintaining high provision coverage, and digital transformation.

• Recovery target for FY26 is ₹16,000 crore, with technical write-off recovery of at least ₹1,500 crore per quarter.