Punjab National Bank (PNB) reported an impressive 307% increase in its standalone net profit for the quarter ended June 30, reaching ₹1,255 crore compared to ₹308 crore in the same period last year. The significant rise was mainly due to reduced bad loans and a record increase in net interest income (NII). PNB’s shares closed at ₹63.21 on the BSE, marking a 4% increase from the previous closing.
PNB’s Managing Director and CEO, Atul Goyal, expressed confidence in recovering around ₹22,000 crore this fiscal year. The bank aims to bring down the gross non-performing assets (NPAs) to 6.5% and the net NPA level to 1% or below by March 2024. In the first quarter, recoveries amounted to ₹5,417 crore, surpassing the slippages of ₹2,258 crore. PNB’s net interest income also saw a 26% growth, reaching ₹9,504 crore, the highest ever recorded by the bank.
Provisions for bad loans decreased to ₹4,374 crore in April-June from ₹4,814 crore in the same period last year, while the Provisioning Coverage Ratio rose to 89.83% from 83.04%. PNB remains committed to its credit growth guidance of 11-12%, focusing on retail, agriculture, and MSME sectors for achieving this growth.
Atul Goyal affirmed confidence in India’s consumption-driven economy and foresees no challenges in terms of growth. The bank has no plans to sell its stake in Canara HSBC Life Insurance or reduce its stake in other ventures.
PNB expects to generate ₹50-100 crore from the sale of attached Nirav Modi properties during the ongoing quarter. Financial inclusion is a key focus for the bank, utilizing its extensive business correspondent network, which now exceeds 25,000.
