Punjab National Bank (PNB) Q2 24/25 earnings summary

Executive summary

• Net profit surged 145% year-over-year to ₹4,303 crore in Q2 FY25, the highest in 14 quarters, with ROA at 1.02% and ROE at 19.91%.

• Gross business rose 11.93% YoY to ₹25.2 trillion, with advances up 12.8% and deposits up 11.33%.

• Asset quality improved: gross NPA fell to 4.48% (from 6.96% YoY), net NPA to 0.46%.

• Capital adequacy ratio reached 16.36%, CET1 at 11.59%, supported by ₹5,000 crore QIP.

• Board approved reviewed standalone and consolidated financial results for the quarter and half-year ended September 30, 2024.

Financial highlights

• Net interest income increased 6% YoY to ₹10,517 crore; total income for Q2 FY25 was ₹34,447 crore, up 17.2% YoY.

• Operating profit rose 10.3% YoY to ₹6,853 crore; other income grew 51% YoY.

• Cost-to-income ratio at 54.58% for Q2 FY25, mainly due to higher establishment expenses.

• CASA grew 3.4% YoY to ₹5.56 trillion; CASA share at 39.31% as of September 2024.

• Basic and diluted EPS (Q2 FY25): ₹3.90 (vs. ₹1.59 YoY).

Outlook and guidance

• Credit growth guidance for FY25 is 11–12%, with actual YoY growth at 12.76% as of September 2024.

• Gross NPA guidance revised to 3.5%-4% by March 2025; net NPA expected below 0.5%.

• Credit cost guidance lowered to 0.25%-0.30% for FY25.

• NIM guidance maintained at 2.9%-3%; deposit rates expected to have peaked.

• QIP proceeds to support future capital requirements and business growth.