Punjab National Bank (PNB) has reported a 52% year-on-year (YoY) increase in net profit, reaching ₹4,567 crore for the fourth quarter of FY25, driven by higher interest income and improved asset quality.
Financial Highlights
- Total income rose 13.4% YoY to ₹36,705 crore, compared to ₹32,361 crore in Q4FY24.
- Interest income increased to ₹31,989 crore, up from ₹28,113 crore in the previous year.
- Net profit for FY25 doubled to ₹16,630 crore, compared to ₹8,245 crore in FY24.
Asset Quality & Capital Strength
- Gross Non-Performing Assets (NPAs) improved to 3.95%, down from 5.73% in March 2024.
- Net NPAs declined to 0.40%, compared to 0.73% a year ago.
- Capital adequacy ratio strengthened to 17.01%, up from 15.97% in FY24.
Dividend & Fundraising Plans
- PNB’s board has recommended a dividend of ₹2.90 per equity share of face value ₹2, subject to shareholder approval.
- The bank has also approved a proposal to raise up to ₹8,000 crore through Basel III-compliant bonds, including ₹4,000 crore in Additional Tier-I bonds and ₹4,000 crore in Tier-II bonds, to be issued in FY26.
Market Reaction & Future Outlook
- PNB shares closed 0.5% lower at ₹94 apiece on the BSE following the earnings announcement.
- The bank remains focused on digital growth, disciplined lending, and asset quality management, ensuring sustained profitability in the coming quarters.
