Punjab National Bank (PNB) Q4 14/15 earnings summary

Executive summary

• FY15 global business grew 10.1% YoY to ₹8.82 lakh crore; operating profit rose 5.0% to ₹11,955 crore, while net profit fell 8.4% to ₹3,062 crore amid higher provisions.

• Strategy emphasized profitable growth through low-cost deposits, selective credit, asset-quality management and expanded digital services.

Financial highlights

• Total income reached ₹52,206 crore; operating profit was ₹11,955 crore, provisions ₹8,893 crore and net profit ₹3,062 crore for FY15.

• Global deposits rose 11.1% YoY to ₹5,01,379 crore; net advances increased 9.0% to ₹3,80,534 crore at 31 Mar 2015.

• Global business reached ₹8,81,913 crore, up 10.1% YoY; overseas business grew 37.2% to ₹1,00,785 crore.

• Retail loans increased 24.6% YoY to ₹48,415 crore; MSME credit rose 21.37% to ₹91,093 crore.

Outlook and guidance

• FY16 was designated the “Year of Performance”; priorities were to curb fresh NPAs, accelerate recoveries, grow CASA and digitalize services.

• Planned credit focus: better-rated corporates, retail, MSME and priority sectors, with the stated aim of improving returns and conserving capital.

• FY16 GDP growth was projected at ~8%, with manufacturing expected to support recovery and create banking opportunities.

• Pragati branches were targeted to increase from 666 to 1,350 by Mar 2016; 121 off-site e-lobbies and tab banking were planned.