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Punjab National Bank has reported 160% growth in net profit at Rs 3010.27 crore
for the quarter ended March 2024 (Q4FY2024). The bank has posted 9% growth in
net interest income (NII), while the core fee income of the bank also improved 32%
in Q4FY2024. The Net Interest Margin (NIM) of the bank eased to 3.10% in
Q4FY2024 compared to 3.24% in the corresponding quarter of previous year.
On business front, the
bank as has posted 9% growth in business with 11% rise in loan book. The asset
quality of the bank has further improved in Q4FY2024. Bank has raised the
credit to deposit ratio to 71.8% at end March 2024 from 69.1% at end March
2023. CASA ratio of the bank has declined to 40.3% at end March 2024 from 42.0%
at end March 2023.
Asset quality improves: The bank has continued
to improve asset quality in Q4FY2024.
The fresh slippages of
loans stood at Rs 2206 crore in Q4FY2024 compared with 1793 crore in previous
quarter and Rs 3996 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 1800 crore, upgradations at Rs 988 crore and the write-off of loans
was at Rs 3447 crore in Q4FY2024.
The standard
restructured loan book of the bank stood at Rs 7895 crore end March 2024.
Provision coverage ratio
improved 95.39% at end March 2024 compared to 94.28% a quarter ago and 86.90% a
year ago.
The capital adequacy
ratio of the bank stood at 16.0% with Tier I ratio at 13.2% at end March 2024.
The risk weighted assets
of the bank has increased 12% YoY to Rs 735435 crore end March 2024,
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Asset Quality
Indicators: Punjab National Bank
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Mar-24
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Dec-23
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Sep-23
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Jun-23
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Mar-23
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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56343.05
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60371.38
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65563.12
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70899.34
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77327.67
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-7
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-27
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Net NPA (Rs Crore)
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6798.77
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8815.88
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13114.12
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17129.47
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22585.04
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-23
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-70
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% Gross NPA
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5.73
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6.24
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6.96
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7.73
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8.74
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-51
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-301
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% Net NPA
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0.73
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0.96
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1.47
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1.98
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2.72
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-23
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-199
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% PCR
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95.39
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94.28
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91.91
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89.83
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86.90
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111
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849
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% CRAR - Basel III
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15.97
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14.63
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15.09
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15.54
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15.50
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134
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47
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% CRAR - Tier I -
Basel III
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13.17
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11.73
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12.02
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12.29
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12.69
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144
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48
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Moderate business
growth: The
business of the bank has increased 9% YoY to Rs 2353038 crore end March 2024, driven
by 11% surge in advances to Rs 983325 crore. Deposits rose 7% to Rs 1369713 crore
at end March 2024.
CASA deposits ratio
declines: The
CASA deposits of the bank increased 3% YoY to Rs 552499 crore at end March
2024. The current account deposits declined 2% to Rs 72201 crore, while saving
account deposits increased 4% to Rs 480298 crore end March 2024. The CASA ratio
declined to 40.3% at end March 2024 compared to 42.0% at end March 2023, while eased
from 41.4% a quarter ago. The term deposits have increased 10% to Rs 817214 crore
end March 2024. Overseas deposits have increased 23% to Rs 36348 crore end
March 2024.
Double digit loan
growth: Advances
growth was driven by retail loans rising 13% YoY to Rs 222574 crore at end
March 2024, while credit to agriculture increased 11% to Rs 158188 crore and MSME
7% to Rs 139288 crore at end March 2024. The corporate credit has increased 11%
to Rs 422341 crore end March 2024. The overseas credit has jumped 17% to Rs 40934
crore end March 2024.
Investment book of the
bank rose 6% YoY to Rs 429001 crore at end March 2024. The SLR book moved up 7%
to Rs 316061 crore, while non SLR book rose 4% to Rs 107244 crore at end March
2024. The AFS book jumped 14% to Rs 93301 crore, while HTM book rose 3% to Rs 328221
crore at end March 2024. The duration of the AFS investment portfolio stood at 3.5
years end March 2024 compared with 2.53 years at end March 2023.
Margins improve: The bank has showed 55 bps
YoY jump in cost of deposits to 5.09%, while yield on advances increased 50 bps
YoY to 8.44% in Q4FY2024. Thus, the NIM has declined 14 bps YoY and 5 bps qoq
to 3.10%
Branch expansion: The bank has added 28 branches
and reduced 324 ATMs in Q4FY2024, taking overall tally to 10136 branches and 12131
ATM`s end March 2024.
Book value of the bank stood at Rs 89.2
per share at end March 2024, while the adjusted book value (net of NNPA and 25%
of restructured advances) was Rs 81.2 per share at end March 2024.
Quarterly Performance
NII rises on double
digit loan growth: Bank has recorded 18% increase in the interest earned at Rs 28113.43
crore, while interest expenses increased 24% to Rs 17750.32 crore in Q4FY2024. NII
improved 9% to Rs 10363.11 crore in the quarter ended March 2024.
Healthy growth in the
core fee income: Bank has posted strong 32% growth in core fee income to Rs 1613 crore,
while the treasury income rebounded to Rs 857 crore and other income jumped 29%
to Rs 22 crore, supporting 24% jump in the overall non-interest income to Rs 4247.61
crore in the quarter ended March 2024. However, the recoveries income declined 26%
to Rs 1639 crore and forex income fell 28% to Rs 117 crore.
Expense ratio rises: The operating expenses
of the bank increased 16% to Rs 8195.04 crore, as other expenses moved up 3% to
Rs 2565.02 crore, while employee expenses increased 23% to Rs 5630.02 crore in
Q4FY2024. Cost to income ratio was rose to 56.1% in Q4FY2024 compared with 54.6%
in Q4FY2023. Operating Profit increased 9% to Rs 6415.68 crore.
Provisions and
contingencies decline: The bank has showed 59% decline in provisions to Rs 1588.05 crore.
The loan loss provisions declined 46% to Rs 1958 crore, while the bank has
written back investment provisions of Rs 41 crore and standard asset provisions
of Rs 534 crore. The other provisions surged 260% to Rs 205 crore.
Effective tax rate declined to 37.6% in Q4FY2024 from 43.1% in Q4FY2023. Net Profit rose by 160% YoY
to Rs 3010.27 crore during quarter ended March 2024.
Financial Performance
FY2024:
Bank has posted 229% increase
in net profit to Rs 8244.62 crore in the year ended March 2024 (FY2024). The
net interest income increased 16% to Rs 40083.07 crore, while non-interest
income moved up 10% to Rs 13383.54 crore, pushing up net total income by 15% to
Rs 53466.61 crore in FY2024. The operating expenses increased 18% to Rs 28535.80
crore, while provision and contingencies dipped 36% to Rs 11736.60 crore, allowing
profit before tax to increase 208% to Rs 13194.21 crore in FY2024. The
cost-to-income ratio rose to 53.4% in FY2024 compared to 51.7% in FY2023. An
effective tax rate declined to 37.5% in FY2024 compared to 41.5% in FY2023. The
net profit has increased 229% to Rs 8244.62 crore in FY2024.
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Punjab National Bank: Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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28113.43
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23848.61
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18
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106901.62
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85144.11
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26
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Interest Expended
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17750.32
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14349.86
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24
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66818.55
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50652.48
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32
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Net Interest Income
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10363.11
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9498.75
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9
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40083.07
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34491.63
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16
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Other Income
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4247.61
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3420.34
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24
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13383.54
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12142.53
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10
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Net Total Income
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14610.72
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12919.09
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13
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53466.61
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46634.16
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15
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Operating Expenses
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8195.04
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7052.66
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16
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28535.80
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24105.41
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18
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Operating Profits
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6415.68
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5866.43
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9
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24930.81
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22528.75
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11
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Provisions &
Contingencies
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1588.05
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3830.58
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-59
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11736.60
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18240.49
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-36
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Profit Before Tax
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4827.63
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2035.85
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137
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13194.21
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4288.26
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208
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EO
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0.00
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0.00
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-
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0.00
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0.00
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-
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PBT after EO
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4827.63
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2035.85
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137
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13194.21
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4288.26
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208
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Provision for tax
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1817.36
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877.24
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107
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4949.59
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1781.06
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178
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PAT
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3010.27
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1158.61
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160
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8244.62
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2507.20
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229
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EPS*(Rs)
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10.9
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4.2
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7.5
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2.3
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Adj BV (Rs)
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81.2
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60.7
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81.2
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60.7
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* Annualized on current equity of
Rs 2202.2 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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