Punjab National Bank Q4 results: Net profit jumps 52%, NII rises 4%; board recommends dividend of ₹2.90/share

Punjab National Bank (PNB), the country's leading public sector lender, on Wednesday, May 7, reported a net profit of ₹4,567 crore in the January-March quarter, marking an upside of 52% from ₹3,010 crore in the same period last year.

The jump in profit came on the back of sharply lower provisions for non-performing assets (NPA). The Delhi-based lender's provisioning for bad loans fell to ₹588 crore as against provisions of ₹1,958 crore in the year-ago period.

PNB's net interest income, or the difference between interest earned on loans and expended on deposits, rose 4% annually to ₹10,757 crore from 10,363 crore.

The bank's asset quality showed an improvement in the fourth quarter of the financial year 2025, as its gross NPA, as a percentage of total advances, came in at 3.95% at the end of Q4 compared with 5.73% in the corresponding period last financial year.

In absolute terms, gross NPA came in at ₹44,081.60 crore as against ₹56,343.05 crore in the year-ago period.

Its net NPA, as a percentage of total advances, improved to 0.40% from 0.73%.

PNB's net profit in financial year 2024-25 rose 101% to ₹16,630 crore as against ₹8,244.62 crore in financial year 2023-24.

The bank considered the proposal of raising capital for an amount up to ₹8,000 crore through the issuance of Basel III compliant bonds (Additional Tier-I Bonds up to ₹4,000 crore and Tier-II Bonds up to ₹4,000 crore) to be raised in one or more tranches during FY 2025-26, PNB said in an exchange filing.

PNB’s credit cost improved by 60 basis points (bps) on a year-on-year (Y-o-Y) basis to 0.21% in Q4 from 0.81% in Q4 FY24. Its global business grew by 14.03% on a Y-o-Y basis to ₹26,83,260 crore as of March 2025 from ₹23,53,038 crore as of March 2024, the Delhi-based lender said in a press release.

Key PNB earnings highlights

• Savings deposits increased to ₹4,98,429 crore registering a Y-o-Y growth of 3.8%.
• Current Deposits increased to ₹75,114 crore registering a Y-o-Y growth of 4.0%.
• CASA Deposits increased to ₹5,73,543 crore recording a Y-o-Y growth of 3.8%.
• CASA Share of the bank stands at 37.95% as on March’25.
• Total Term Deposit witnessed a growth of 21.5% on Y-o-Y basis to ₹9,93,080 crore as on March’25.
• Total Retail credit increased by 16.5% Y-o-Y to ₹2,59,363 crore as on March’25.
• Housing Loan grew by 18.3% Y-o-Y to ₹1,16,312 crore.
• Vehicle loan posted a growth of 25.5% Y-o-Y to reach ₹26,056 crore.
• Agriculture Advances grew by 14.2% on Y-o-Y basis to ₹1,80,625 crore.
• MSME Advances increased Y-o-Y by 16.8% to ₹1,62,693 crore.

The Bank had 10,189 domestic branches and two international branches at the end of March quarter. The bank also has 11,822 ATMs and 33,349 BCs as part of its distribution network making the total number of 55,360 touch points as on 31.03.2025, PNB said.

PNB shares traded 0.32% lower at ₹94.25 after earnings announcement.