PNB Q2 Results: Net profit, NII highest in 14 quarters; Here’s how the stock is expected to open tomorrow

The growth in the bank’s net profit was the highest in the previous 14 quarters — on the back of higher interest income and improved credit quality. The state-run lender’s net-interest income (NIIs) – the difference between interest earned and interest expended- in the second quarter of current fiscal rose 20 per cent to ₹9,923 crore, compared to ₹8,270.7 crore in the year-ago period.

PNB Q2 Results: Here are the key numbers

Atul Kumar Goel, Managing Director (MD) and Chief Executive Officer (CEO), PNB told news agency PTI that the credit cost will reduce in the coming quarters and profitability of the bank will increase. The net interest income, net profit, and operating profit are highest in the past 14 quarters, he said.

“RAM (Retail, agri and MSME sectors) will be the focus areas of PNB. In the first half of current fiscal (Apri-September), we achieved a profitabiity of over ₹3,000 crore. “I am hopeful that we will be able to maintain the same profitability in the third and fourth quarters,” Goel told reporters.

The bank’s asset quality for the quarter ended September 2023 improved on a sequential basis. PNB’s gross non-performing assets (NPA) during Q2FY24 decreased to ₹65,563.12 crore compared to ₹70,899.34 crore in the preceding April-June quarter. 

Also Read: PNB Q2 Results: Net profit jumps 327% to ₹1,756 crore; NII rises 20% YoY

The net NPA also fell to ₹13,114.12 crore from ₹17,129.47 crore in the June quarter of current fiscal. The Gross NPA as a proportion of gross advances decreased to 6.96 per cent in Q2FY23 from 7.73 per cent in Q1FY24. The Net NPA as a proportion of net advances declined to 1.47 per cent in the September quarter from 1.98 per cent in the June quarter. 

The public-sector lender’s global business increased 11.26 per cent to ₹22,51,631 crore in the September quarter as against ₹20,23,713 crore in the year-ago period. The bank’s savings deposits increased to ₹4,71,238 crore in Q2FY23 from ₹4,51,707 crore, while current deposits were at ₹67,038 crore.

PNB Q2 Results: Here’s how the stock is expected to open tomorrow

After a massive surge in net profit and improved asset quality reported in the September quarter, analysts expect shares of PNB to open in the green on Friday, October 27.

After the announcement of Q2FY24 results, PNB share price recovered from losses and traded higher in the second half of today’s session. PNB stock price gained as much as 1.22 per cent to hit an intraday high of ₹70.30 apiece on the BSE.

‘’As expected, the state-owned Punjab National Bank gave strong numbers in Q2FY24. The bank delivered a three-fold jump in net profit, beating market estimates while maintaining robust asset quality. The NPAs were down significantly on an annualised basis, and we are of the view that the bank has cleared a large part of its pain and can focus on building the business,” said Shreyansh Shah, Research Analyst, StoxBox

‘’With the bank’s focus on growing its loan disbursals in the housing segment, we believe that it will be able to generate higher yields in the medium term. Thus, we remain positive on the bank from a medium to long term perspective,” added Shah.

After reporting the Q2FY24 numbers earlier today, shares of PNB settled 0.52 per cent higher at ₹69.81 apiece on the BSE.

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Updated: 26 Oct 2023, 06:52 PM IST