Punjab National Bank's net profit rose four times in the April-June quarter, due to higher core income.
The state-owned lender's net profit jumped to Rs 1,255.4 crore in the quarter ended June, as compared with Rs 308.4 crore in the same quarter last year, according to an exchange filing on Wednesday. Sequentially, the profit rose 8.3%.
Net interest income gained 26% from a year ago to Rs 9,504.2 crore. Other income rose 0.3% to Rs 3,433.8 crore quarter-on-quarter. The global net interest margin increased to 3.08% year-on-year, from the previous 2.79%.
The bank's asset quality position improved, with gross non-performing asset ratio declining to 7.73% from 8.74% in the previous quarter. Even the net NPA ratio fell to 1.98% from 2.72% sequentially.
The healthy asset quality has prompted the bank to revise its guidance for GNPA and NNPA for FY24, said Atul Kumar Goel, managing director and chief executive officer, Punjab National Bank, at the media conference call.
The GNPA guidance has been revised to 6.5% and NNPA guidance has been revised to 1% for FY24.
Provisions fell almost 17% to Rs 3,965 crore year-on-year, from the previous Rs 4,790 crore.
The capital adequacy ratio improved to 15.54%, as compared with 14.82% in the same quarter a year ago.
PNB's deposits rose 14.18% year-on-year to Rs 12,979 crore from the previous Rs 11,367.5 crore. Its advances also grew 16.3% to Rs 8,637.3 crore year-on-year, as compared with Rs 7,426.4 crore.
The bank's core retail advances rose 16.2% year-on-year, led by growth in personal loan segment by 46.4% year-on-year. The slippage ratio improved to 1.19% from the previous 3.75% sequentially.
Despite this, the bank's current account saving account ratio reduced to 4.90% sequentially, from the previous 42.98%. The management has attributed this decline to customers shifting from saving accounts to term deposits, due to a wide gap in the rate of interest offered.
"We are confident of achieving double profitability as compared to last year. In Q1 FY24, we have already achieved Rs 1,255 crore. As far as revision of guidance is concerned, we will wait and see the performance of the quarter ending September," Goel said.
Shares of Punjab National Bank rose 2.3% to Rs 62.10 apiece as of 1:30 p.m., after the results were announced.
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