PNB Q4 Results: Net Profit Up 51.7% YoY To Rs 4,567 Cr; Board Okays Rs. 2.9 Dividend & Rs. 8000 Cr Fundraising

Punjab National Bank (PNB) on Wednesday reported a net profit of Rs 4,567 crores during the quarter ended 31st March, 2025 up by 51.7% YoY compared to Rs 3,010.27 Cr reported in the same quarter of the previous fiscal year.

For FY 2024-2025, the Board of Directors recommended a dividend of Rs. 2.90 per equity share (145%) of face value of Rs. 2 per share, subject to shareholders' approval at the bank's upcoming Annual General Meeting to be held on 27th June.

The Board of Directors "considered the proposal of raising of capital for an amount up to Rs. 8000 crore through issuance of Basel Ill compliant Bonds (Additional Tier-I Bonds up to Rs. 4000 crore and Tier- I Bonds up to Rs. 4000 crore), to be raised in one or more tranches during FY 2025-26," PNB said in a regulatory statement on Wednesday.

In FY 2025, the bank reported a net profit of Rs 16,630 Crore, representing a 101.7% year-on-year growth. PNB's Net Interest Income (NII) increased to Rs 10,757 Crore in Q4 FY'25 from Rs 10,363 Crore in Q4 FY'24 whereas Net Interest Income for FY'25 was at Rs 42,782 Crore recording growth of 6.7% on a YoY basis.

The bank's Return on Assets (RoA) jumped from 0.77% in Q4 FY'24 to 1.02% in Q4 FY'25, a 25 basis point improvement. While Return on Equity (RoE) increased to 19.23% in Q4 FY'25 from 16.48% in Q4 FY'24, RoA improved Y-o-Y by 43 basis points to 0.97% in FY'25 from 0.54% in FY'24. RoE increased from 11.66% in FY'24 to 19.33% in FY'25.

The asset quality of Punjab National Bank (PNB) significantly improved during the fiscal year that ended in March 2025. A reduction in the percentage of gross bad loans and higher loan recovery or write-offs, which lead to better credit risk management, are the reasons for the bank's gross non-performing assets (GNPA) ratio dropping by 178 basis points YoY to 3.95% as of March 2025 from 5.73% as of March 2024.

PNB's net non-performing assets (NNPA) ratio dropped 33 basis points YoY to 0.40% in March 2025 from 0.73% in March 2024. This suggests that not only have gross non-performing assets (NPAs) lowered, but also that provisioning has gotten better, lowering the bank's net exposure to bad loans.

PNB's Net Non-Performing Assets (NNPA) dropped by Rs 2,508 Crore from Rs 6,799 Crore as of March 2024 to Rs 4,291 Crore as of March 2025, while its Gross Non-Performing Assets (GNPA) plummeted by Rs 12,261 Crore from Rs 56,343 Crore as of March 2024 to Rs 44,082 Crore as of March 2025.

With a 143 basis point rise, the bank's Provision Coverage Ratio (PCR), which includes Technical Write-Offs, improved from 95.39% to 96.82%, demonstrating the bank's financial health and ability to handle potential loan losses from non-performing assets (NPAs).

PNB's credit cost surged from 0.81% in Q4 FY'24 to 0.21% in Q4 FY'25, a 60 basis point year-on-year improvement. PNB's savings deposits grew to Rs 4,98,429 Crore, representing a 3.8% YoY growth; current deposits rose to Rs 75,114 Crore, representing a 4.0% YoY growth; CASA deposits rose to Rs 5,73,543 Crore, representing a 3.8% YoY growth; and total term deposits grew by 21.5% YoY to Rs 9,93,080 Crore as of March 2025.

As of March 2025, the bank's total retail credit has grown by 16.5% YoY to Rs 2,59,363 crore.

According to PNB, its operating profit for the fourth quarter of FY'25 was Rs 6,776 crore, and for FY'25, it was Rs 26,831 crore, indicating YoY growths of 5.6% and 7.6%, respectively. The bank's total income for the fourth quarter of FY'25 was Rs 36,705 Crore, and for the entire FY'25, it was Rs 1,38,070 Crore, indicating YoY growths of 13.4% and 14.8%, respectively. PNB's total interest income for the fourth quarter of FY25 was Rs 31,989 Crore, and for full FY25, it was Rs 1,21,761 Crore, representing YoY growths of 13.8% and 13.9%, respectively. On a year-on-year basis, non-interest income increased by 11.0% and 21.9% to Rs 4,716 Crore in Q4 of FY25 and Rs 16,309 Crore in FY25.

The bank has resulted in two international branches and 10,189 domestic branches as of March 31, 2025. PNB operated 63.4% of its branches in rural and semi-urban regions out of its total number. As of March 31, 2025, the bank's distribution network included 333,49 BCs and 11,822 ATMs, for a total of 55,360 touch points.

PNB Share Price Target

"PNB is forming a bullish base and showing signs of strength. The stock has support around ₹91 and ₹88, and resistance is near ₹97. A breakout above ₹97 could push it toward ₹105. The RSI is near 60, suggesting buyers are gradually gaining control. The chart setup looks encouraging for a continued move higher. Buying on dips near ₹91 or on breakout above ₹97 can be a good strategy with proper stop loss," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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