Punjab National Bank (PNB) Q3 24/25 earnings summary

Executive summary

• Net profit for the nine months ended December 2024 was INR 12,063 crore, up 130.5% YOY; Q3 net profit was INR 5,408 crore, up 102.8% YOY.

• Asset quality improved significantly: GNPA reduced to 4.09% (from 6.24% YOY), net NPA to 0.41% (from 0.96% YOY), and PCR rose to 96.77%.

• Digital transactions share increased to 91% in Q3 FY25, reflecting strong digital adoption and new digital banking features.

• Return on Assets for Q3 FY25 was 1.03%; Return on Equity was 19.22%.

• Operating profit for Q3 FY25 rose 4.6% year-over-year to INR 6,621 crore.

Financial highlights

• Net interest income for nine months was INR 32,025 crore (+7.8% YOY); Q3 NII was INR 11,032 crore (+7.2% YOY).

• Total income for Q3 FY25 grew 16% year-over-year to INR 34,752 crore.

• Cost-to-income ratio for Q3 FY25 stood at 54.16%.

• Earnings per share (EPS) for Q3 FY25 was INR 3.92.

• Other income in Q3 declined due to muted technical write-off recoveries and negative MTM provisions.

Outlook and guidance

• Credit growth expected to remain in the 13%-14% range, with strong corporate and MSME pipeline.

• Guidance for NIM in FY25 is 2.9%-3%, with strategies in place to maintain margins despite potential rate cuts.

• Recovery target for FY25 is INR 18,000 crore, with Q4 expected to contribute INR 5,000-6,000 crore.

• Board will finalize FY26 guidance after budget and MPC announcements.

• Continued focus on asset quality, provisioning, and digital banking expansion.