PNB Q2 Results: Net Profit Jumps 145% YoY, CEO calls it 'Historically Best Result'

Punjab National Bank (PNB) on Monday reported a substantial growth of 145 per cent from Rs 1,756 crore, in the year-ago quarter. The standalone net profit surged more than two-times as it touched Rs 4,306 crore in the second quarter ended September 2024.

"This is the best result PNB has delivered in 16 quarters, Historically, for the first time, our gross global business surpassed Rs 25 Lakh Crore," said Atul Kumar Goel, Managing Director and CEO of PNB, while addressing the press conference.

Total income of the public lender has increased to Rs 34,447 crore during the quarter under review against Rs 29,383 crore in the same quarter last year. The bank reported an interest income of Rs 29,875 crore during the quarter, higher than Rs 26,355 crore in the same period a year ago.

In terms of the asset quality, the bank witnessed improvement with gross Non-Performing Assets (NPAs) declining to 4.48 per cent of the gross loans by the end of September 2024 from 6.96 per cent a year ago. Similarly, net NPAs or bad loans moderated to 0.46 per cent from 1.47 per cent at the end of the second quarter of the previous fiscal.

"This is the best quarter in terms of profitability. Recovery is more than slippages," added Goel while commenting on the recovery of loans. He clarified that nearly 14 accounts of bad loans have been transferred to National Asset Reconstruction Company Limited (NARCL).

The Provisioning Coverage Ratio (including Technical Written off accounts) as at September 30, 2024 rose to 96.67 per cent from 91.91 per cent at the end of same quarter a year ago.

On a consolidated basis, the bank's profit more than doubled to Rs 4,714 crore as against Rs 1,990 crore in Q2FY24. Bank's global deposits registered a growth of11.33% on Y-o-Y basis to Rs 14,58,342 crore as on September 2024 from Rs 13,09,910 in the same quarter of the previous year.

During the quarter, the bank made floating provision of Rs 350 crore in line with the board approved policy, it said.

As on September 30, it said, the bank is holding floating provision of Rs 500 crore.