Punjab National Bank (PNB) Q1 24/25 earnings summary

Executive summary

• Net profit surged 159% year-over-year to ₹3,252 crore in Q1 FY25, with ROA at 0.82% and ROE at 16.82%.

• Operating profit rose 10.3% YoY to ₹6,581 crore, and net interest income increased 10.2% YoY to ₹10,476 crore.

• Asset quality improved: GNPA fell to 4.98% (down from 7.73% a year ago), NNPA to 0.60% (from 1.98%), and PCR reached 95.90%.

• Global business grew 10% YoY to ₹24.39 trillion, with advances up 12.2% and deposits up 8.5%.

• Board approved and published reviewed standalone and consolidated financial results for Q1 FY25.

Financial highlights

• Total income for Q1 FY25 was ₹32,167 crore, up 12.5% YoY; operating income grew 8.9% YoY.

• CASA ratio at 42%, with savings bank growth positive both YoY and sequentially.

• Cost-to-income ratio improved to 53.28% from 56.09% last quarter.

• Fee-based income increased 16.3% YoY; net profit per employee rose to ₹13.66 lakh.

• Non-recurring OpEx of ₹558 crore for PSLC purchase; normalized OpEx expected in subsequent quarters.

Outlook and guidance

• FY25 guidance: credit growth 11–12%, deposit growth 9–10%, NIM ~3.07%, GNPA revised to ~4%, NNPA below 0.5%.

• Credit cost expected below 0.5%; slippage ratio below 1%.

• NIM guidance unchanged at 2.9%-3%; ROA guidance at 0.8%, with expectation to reach 1% by year-end.

• Recovery target for FY25 set at ₹18,000 crore, with ₹3,000 crore expected from NCLT recoveries.