PNB Q4 Result: Strong Growth with Net Profit Surge and Dividend Recommendation

PNB's Q4 FY'24 shows strong growth with net profit up 159.8% to ₹3,010 Crore, reflecting improved asset quality and a dividend recommendation of ₹1.50 per share.

by S Samayanka

Updated Jul 06, 2024

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PNB Q4 Result: Strong Growth with Net Profit Surge and Dividend Recommendation

PNB Q4 Results

These results reflect a strong financial performance and growth across various parameters for PNB in Q4 and FY'24.

Dividend Recommendation

  • The Board of Directors has recommended a dividend of ₹1.50 per equity share, which is 75%, for the year ending March 31, 2024. This is subject to necessary approvals.

Net Profit

  • Net Profit for Q4 FY’24 increased by 159.8% compared to the same period last year, reaching ₹3,010 Crore. This is also a 35.4% increase from the previous quarter (Q3 FY’24).
  • For the entire FY’24, Net Profit grew by 228.8%, amounting to ₹8,245 Crore, compared to ₹2,507 Crore in FY’23.

Operating Profit

  • Operating Profit for Q4 FY’24 increased by 9.4% compared to the same period last year, reaching ₹6,416 Crore.
  • For the full year, Operating Profit was ₹24,931 Crore, a 10.7% increase from ₹22,529 Crore in FY’23.

Asset Quality

  • The Gross Non-Performing Assets (GNPA) ratio improved to 5.73% in March 2024, down from 8.74% in March 2023.
  • The Net Non-Performing Assets (NNPA) ratio also improved, decreasing from 2.72% in March 2023 to 0.73% in March 2024.
  • The Provision Coverage Ratio (PCR) increased to 95.39% in March 2024, up by 849 basis points from the previous year.

Business Growth

  • The bank’s Global Business grew by 8.6% year-over-year, reaching ₹23,53,038 Crore in March 2024.
  • Global Deposits rose by 6.9%, totaling ₹13,69,713 Crore, and Global Advances increased by 11.2%, reaching ₹9,83,325 Crore.

Deposit and Loan Highlights

  • Savings Deposits grew by 3.5% year-over-year, reaching ₹4,80,298 Crore.
  • Current Deposits increased by ₹3,565 Crore on a quarter-to-quarter basis, reaching ₹72,201 Crore in March 2024.
  • CASA Deposits grew by 2.7%, totaling ₹5,52,499 Crore with a CASA share of 41.44%.
  • Retail Term Deposits under ₹2 Crores grew by 9.5%, reaching ₹5,62,705 Crore.
  • Total Retail Credit increased by 12.6% to ₹2,22,574 Crore.
  • Housing Loans grew by 14.5%, Vehicle Loans by 25.6%, and Personal Loans by 14.4%.
  • Agriculture Advances increased by 11.3%, and MSME Advances by 7.0%, totaling ₹1,58,188 Crore and ₹1,39,288 Crore, respectively.

Profitability and Efficiency

  • Total Income for Q4 FY’24 was ₹32,361 Crore and for FY’24 was ₹1,20,285 Crore, showing year-over-year growth of 18.7% and 23.6%, respectively.
  • Total Interest Income for Q4 FY’24 was ₹28,113 Crore, and for FY’24, it was ₹1,06,902 Crore, showing a year-over-year growth of 17.9% and 25.6%, respectively.
  • Fee-based income grew by 8.4% from ₹5,612 Crore in FY’23 to ₹6,084 Crore in FY’24.
  • Business per employee improved to ₹23.84 Crore in March 2024, up from ₹21.64 Crore in March 2023.
  • Net profit per employee increased to ₹8.61 lakhs in FY’24 from ₹2.57 lakhs in FY’23.
  • Business per branch increased to ₹225.25 Crore in March 2024, up from ₹209.53 Crore in March 2023.

Priority Sector and Financial Inclusion

  • Priority Sector Advances exceeded the national goal, standing at 40.57% of Adjusted Net Bank Credit (ANBC).
  • Agriculture advances were at 18.27% of ANBC.
  • Credit to Small & Marginal Farmers and Weaker Sections surpassed national goals, standing at 10.09% and 13.57% of ANBC, respectively.
  • Credit to Micro Enterprises also exceeded the goal, standing at 8.16% of ANBC.
  • PMJDY accounts increased to 5.05 Crores in March 2024 from 4.59 Crores in March 2023.
  • Enrollment in PMJJBY, PMSBY, and APY schemes increased significantly.

Digital Initiatives

  • Digital transactions increased by 62% year-over-year, reaching 659 Crores in FY’24.
  • Internet Banking users grew by 8% year-over-year to 423 Lakhs in March 2024.
  • Total Digital Loans disbursed increased to ₹8,588 Crore in March 2024 from ₹4,124 Crore in March 2023.
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Statement of PNB Q4 Result

Fiscal Period

Mar 24

Dec 22

QoQ Comp

Mar 23

YoY Comp

Net Interest Income

10,476.40

9,295.71

0.66%

9,615.79

8.95%

Loan Loss Provision

1,559.74

4,718.67

-43.15%

3,708.17

-57.94%

Non-Interest Income Bank

4,294.15

3,325.25

60.49%

3,826.89

12.21%

Non-Interest Expense Bank

-8,270.94

-6,859.06

23.35%

-7,104.81

16.41%

Net Income Before Taxes

4,939.87

1,043.23

35.92%

2,629.70

87.85%

Net Income

3,342.20

708.27

37.38%

1,864.35

79.27%

Diluted Normalized EPS

3.04

0.64

37.56%

1.69

80.41%

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PNB Share

PNB Share Price (as of July 5, 2024):

Current Price: ₹122.80 (Economic Times)

Change: Up 1.03% from the previous close of ₹121.50

The share price has decreased by 7.44% in the last 5 days. However, it has grown by 26.01% in the last year.

Analysts predict a target price of ₹137.69 for 2024.

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PNB

Punjab National Bank (PNB) is a major government-owned bank in India, headquartered in New Delhi. Founded in May 1894, it is the second-largest public sector bank in the country, serving over 180 million customers. PNB has 12,248 branches and more than 13,000 ATMs.

The bank also operates internationally, with a subsidiary in the UK called PNB International Bank, which has seven branches. PNB has branches in Hong Kong, Kowloon, Dubai, and Kabul, and representative offices in Almaty, Dubai, Shanghai, Oslo, and Sydney.

In Bhutan, PNB owns 51% of Druk PNB Bank, and in Nepal, it owns 20% of Everest Bank. PNB also holds a 41.64% stake in JSC (SB) PNB Bank in Kazakhstan. The bank is rated CARE AA+ (Stable) by CareEdge Ratings.

PNB Q4 Result - FAQs

1. What are PNB's Q4 FY'24 net profit highlights?

PNB's net profit for Q4 FY'24 increased by 159.8% year-over-year to ₹3,010 Crore.

2. How did PNB perform in terms of operating profit in Q4 FY'24?

Operating profit in Q4 FY'24 rose by 9.4% year-over-year to ₹6,416 Crore.

3. What is PNB's dividend recommendation for FY'24?

PNB's Board recommended a dividend of ₹1.50 per equity share, amounting to 75% for FY'24.

4. How has PNB's asset quality improved in FY'24?  

PNB's Gross Non-Performing Assets (GNPA) ratio improved to 5.73% in March 2024 from 8.74% in March 2023, showing better asset quality management.

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