Public sector lender Punjab National Bank (PNB) has revealed an impressive 51.7% year-on-year (YoY) growth in its standalone net profit for the fourth quarter of the fiscal year 2024-25 (Q4 FY25). The bank’s profit soared to ₹4,567 crore for the quarter ending March 2025, a significant increase from ₹3,010.27 crore in the same period last year. This marks a slight quarter-on-quarter (QoQ) rise of 1.3% from ₹4,508.21 crore reported in Q3 FY25.

Financial Highlights of Q4 FY25

• Net Interest Income (NII): PNB’s NII saw a 3.8% YoY increase, reaching ₹10,756.98 crore, compared to ₹10,363.11 crore a year ago. However, it did experience a slight decline of 2.55% QoQ from ₹11,032.25 crore in the previous quarter.
• Net Interest Margin (NIM): The NIM for Q4 FY25 was 2.81%, while for the entire fiscal year, it stood at 2.93%.

The bank’s operating profit for Q4 FY25 was reported at ₹6,776 crore, translating to a 5.6% YoY growth. For the entire fiscal year, the operating profit totaled ₹26,831 crore, reflecting a 7.6% increase.

Asset Quality Improvement

PNB has made significant strides in improving its asset quality:

• Gross Non-Performing Assets (GNPA) fell to ₹44,082 crore, a reduction of ₹12,261 crore from ₹56,343 crore in March 2024.
• Net NPA decreased by ₹2,508 crore YoY, reaching ₹4,291 crore in the latest quarter.
• The GNPA ratio improved by 178 basis points (bps) YoY, now standing at 3.95% compared to 5.73% a year earlier.
• The Net NPA ratio also improved, decreasing by 33 bps YoY to 0.40%.

Growth in Deposits and Advances

PNB reported robust growth in its deposits and advances:

• Global Deposits: A notable 14% YoY increase brought total deposits to ₹15,66,623 crore, up from ₹13,69,713 crore in March 2024.
• Global Advances: The bank’s advances rose by 13.56% YoY, reaching ₹11,16,637 crore compared to ₹9,83,325 crore in the previous year.

Dividend Announcement and Fundraising Plans

In conjunction with its financial results, PNB has declared a dividend of ₹2.90 per share, equivalent to 145% of its face value of ₹2. This is subject to approval at the upcoming Annual General Meeting (AGM).

Additionally, PNB’s board has approved plans to raise ₹8,000 crore through the issuance of Basel III-compliant bonds. This includes ₹4,000 crore in Additional Tier-I Bonds and ₹4,000 crore in Tier-II Bonds, to be issued in multiple tranches during the fiscal year 2025-26.

Market Reaction

Following the announcement of Q4 results, PNB’s stock experienced a decline. After showing positive movement earlier in the day, the share price dipped to a low of ₹92.75, marking a 1.90% decrease. As of 3:22 PM, the shares were trading 0.42% lower at ₹94.15.

In summary, PNB’s Q4 FY25 results showcase strong profitability, improved asset quality, and significant deposit growth, alongside strategic plans for dividend distribution and capital raising. This positions the bank favorably as it navigates the financial landscape ahead.