Punjab National Bank (PNB), one of India's leading public sector banks, has reported impressive financial results for the fourth quarter (Q4) and the full fiscal year 2024-25 (FY25). The bank's robust performance is marked by significant growth in net profit, improved asset quality, and enhanced return ratios.
Q4 FY25 Financial Highlights
Net Profit: PNB's net profit for Q4 FY25 surged by 51.7% year-on-year (YoY) to Rs 4,567 crore, up from Rs 3,010 crore in Q4 FY24.
Total Income: The bank's total income for the quarter stood at Rs 36,705 crore, reflecting a 13.4% YoY increase.
Net Interest Income (NII): NII rose to Rs 10,757 crore in Q4 FY25, compared to Rs 10,363 crore in the same quarter of the previous year.
Operating Profit: Operating profit for the quarter was Rs 6,776 crore, marking a 5.6% YoY growth.
Full-Year FY25 Performance
Net Profit: For the entire fiscal year, PNB's net profit more than doubled, registering a 101.7% YoY increase to Rs 16,630 crore, up from Rs 8,245 crore in FY24.
Total Income: The bank's total income for FY25 was Rs 1,38,070 crore, a 14.8% increase from the previous year.
Net Interest Income (NII): NII for the year stood at Rs 42,782 crore, reflecting a 6.7% YoY growth.
Operating Profit: Operating profit for FY25 was Rs 26,831 crore, up 7.6% YoY.
Asset Quality and Return Ratios
Gross Non-Performing Assets (GNPA): The GNPA ratio improved significantly, declining to 3.95% as of March 2025 from 5.73% in March 2024.
Net Non-Performing Assets (NNPA): NNPA ratio also saw improvement, falling to 0.40% from 0.73% in the previous year.
Return on Assets (RoA): RoA increased to 1.02% in Q4 FY25, up from 0.77% in Q4 FY24.
Return on Equity (RoE): RoE improved to 19.23% in Q4 FY25, compared to 16.48% in the same quarter of the previous year.
Dividend and Capital Raising
Dividend: The bank's board has recommended a dividend of Rs 2.90 per equity share for FY25, subject to shareholder approval.
Capital Raising: PNB's board has approved raising up to Rs 8,000 crore through the issuance of Basel III-compliant bonds in FY26 to support business growth and regulatory requirements.
Business Growth and Digital Initiatives
Deposits and Advances: Global deposits grew by 14.38% YoY to Rs 15.67 lakh crore, while global advances increased by 13.56% to Rs 11.17 lakh crore.
Retail Credit: Retail credit witnessed a 16.5% YoY growth, with home loans and vehicle loans growing by 18.3% and 25.5%, respectively.
Digital Transactions: PNB recorded a significant increase in digital transactions, with the number reaching 997 crore in FY25, up 51% from the previous year.
Outlook
PNB's strong financial performance in FY25, marked by substantial profit growth, improved asset quality, and enhanced return ratios, positions the bank well for future growth. The bank's focus on expanding its digital footprint, improving operational efficiency, and maintaining robust asset quality is expected to support sustained profitability in the coming years.
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