The Business Bytes
New Delhi, May 09, 2024 (TBB Bureau): Public sector lender Punjab National Bank (PNB) on Thursday unveiled its financial performance for the quarter and year ended March 31, 2024, showcasing remarkable growth and profitability.
PNB reported a notable surge in net profit, with a staggering year-on-year (YoY) growth of 159.8% and a quarter-on-quarter (QoQ) increase of 35.4% in Q4 of FY24. The net profit for Q4 FY24 stood at Rs 3,010 crore, a significant rise from Rs 1,159 crore in Q4 FY23 and Rs 2,223 crore in Q3 FY24. For the full fiscal year FY24, the net profit soared to Rs 8,245 crore, marking an impressive growth of 228.8% from Rs 2,507 crore in FY23.
Return on Assets (RoA) and Return on Equity (RoE) witnessed substantial improvements both on a quarterly and yearly basis. RoA increased to 0.77% in Q4 FY24 from 0.58% in Q3 FY24 and 0.32% in Q4 FY23. Similarly, RoE surged to 16.48% in Q4 FY24 from 12.45% in Q3 FY24 and 7.11% in Q4 FY’23.
The bank demonstrated commendable progress in asset quality metrics, with a significant reduction in Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) ratios. GNPA ratio improved by 301 basis points (bps) year-on-year to 5.73% as on March ’24, while NNPA ratio improved by 199 bps to 0.73%.
Operating profit increased by 9.4% year-on-year to Rs 6,416 crore in Q4 FY24, while Net Interest Income (NII) rose to Rs 10,363 crore in the same period, showcasing a year-on-year growth of 9.1%.
The bank’s Board of Directors has proposed a dividend of Rs 1.50 per equity share (75%) for the fiscal year 2023-24, subject to necessary approvals.
PNB witnessed healthy growth in its global business, which expanded by 8.6% year-on-year to Rs 23,53,038 crore as on March ’24. Global deposits and advances registered growth of 6.9% and 11.2% year-on-year, respectively.
The bank experienced robust growth in retail credit, with Total Retail credit increasing by 12.6% to Rs 2,22,574 crore in March ’24. Priority Sector Advances surpassed national goals, reflecting the bank’s commitment to inclusive growth.
PNB continued to focus on digital transformation, witnessing significant growth in digital transactions and internet banking services. The number of digital transactions surged by 62% year-on-year, reaching 659 crore during FY24.
The bank expanded its branch network to 10,138 branches, including 2 international branches, and strengthened its distribution network with 12,131 ATMs and 33,614 Business Correspondents (BCs).
