New Delhi, July 30
Punjab National Bank's (PNB) net profit for the quarter ended June 30 stood at Rs 1,675 crore, down 49 per cent year-on-year, according to its stock exchange filing on Wednesday.
The public sector lender had posted a net profit of Rs 3,251 crore in the same quarter last year (Q1 FY25) and Rs 4,567 crore in the preceding quarter (Q4 FY25).
Meanwhile, PNB's total income for the quarter rose 15.7 per cent YoY to Rs 37,231 crore from Rs 32,165 crore in Q1 FY25. The bank had reported a net income of Rs 36,705 crore in the preceding quarter.
Meanwhile, the net interest income (NII) moved up marginally to Rs 10,578 crore, compared to Rs 10,468 crore in the same period a year earlier.
The bank's profit was primarily hampered by a sharp increase in tax expenses, which more than doubled in absolute terms from Rs 2,017 crore to Rs 5,083 crore.
The bank's underlying operational strength during the quarter was overshadowed by this spike in tax outflow.
The bank reported an improvement in its asset quality in the quarter under review.
Gross non-performing assets (NPAs) fell to Rs 42,673 crore, with the Gross NPA ratio improving to 3.78 per cent from 4.98 per cent a year ago.
Similarly, the Net NPAs ratio dipped to 0.38 per cent, compared to 0.60 per cent in Q1 FY25, as per the filing.
In line with the improved asset quality, the bank's provisioning requirements dropped significantly to Rs 396 crore, down from Rs 792 crore in the corresponding quarter last year.
According to the filing, the Bank's profit before tax (PBT) increased by 28 per cent to Rs 6,758 crore in Q1 FY26 as against Rs 5,269 crore in Q1 FY25.
Its global Business grew by 11.6 per cent on a YoY basis to Rs 27,19,276 crore as on June 25 from Rs 24,36,929 Crore as on June 24, the bank said.
— IANS
Reader Comments
As someone who banks with PNB, I'm happy to see their NPA ratios improving. That's more important for long-term stability than quarterly profits. The 11.6% business growth shows they're expanding well despite the profit dip.
Ye to bada nuksaan hua! From ₹3,251 crore to ₹1,675 crore - almost half! Kya bank management ko koi accountability nahi hai? At least they reduced NPAs but still, public sector banks need better financial management.
The numbers are confusing - profit down but business up, NII up slightly, PBT up 28% but net profit down 49%? Must be some one-time tax impact. As a shareholder, I hope this is temporary and next quarter will be better.
The operational metrics actually look healthy - business growth, lower NPAs, reduced provisions. The tax spike seems to be the main culprit. Maybe PNB should communicate better about what caused this extraordinary tax burden?
As a banking sector analyst, I see positive signs here. The core banking performance is strong - NII growth, business expansion, and stellar NPA reduction. The profit decline is purely from tax outgo which could be timing difference. Don't panic!
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.