Punjab National Bank (PNB) Q2FY25 Net profit increases 145%

Punjab National Bank (PNB) reported a substantial 2.5x year-on-year surge in its standalone net profit to Rs 4,303.5 crore for the quarter ending September 2024, compared with Rs 1,756.1 crore in the same period a year earlier. The jump in profit was helped by an over Rs 3,150-crore fall in new provisions recorded during the quarter, while the interest income surged and asset quality improved.

The PSU bank’s NII for the July-September quarter rose by 6 percent year-on-year to Rs 10,517 crore, up from Rs 9,923 crore last year.

The new provisions and contingencies recorded during the quarter fell sharply to just Rs 288 crore from Rs 3,444.2 crore, boosting the public sector lender’s bottomline.

PNB's gross NPA ratio improved to Rs 4.48 percent at the end of September, from 4.98 percent at the end of June. Net NPA ratio too improved to 0.48 percent from 0.6 percent in the preceding quarter.

The new provisions and contingencies recorded during the quarter fell sharply to just Rs 288 crore from Rs 3,444.2 crore, boosting the public sector lender’s bottomline.

PNB's gross NPA ratio improved to Rs 4.48 percent at the end of September, from 4.98 percent at the end of June. Net NPA ratio too improved to 0.48 percent from 0.6 percent in the preceding quarter.

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Karnataka Orders Closure of all Government Accounts in two PSU banks due to Alleged Fraud

 

On Wednesday, the Karnataka government took a significant step by ordering all state departments to close their accounts in the State Bank of India (SBI) and Punjab National Bank (PNB). This decision comes as a response to allegations of misappropriation of funds.

The Karnataka government has directed all departments, public enterprises, corporations, local bodies, universities, and other institutions to close their accounts with SBI and PNB immediately. The order, issued in a circular dated August 12 by PC Jaffer, the Secretary of Budget & Resources in the Finance Department, and approved by Chief Minister Siddaramaiah, specifies that no further deposits or investments should be made in these banks.

The deadline for compliance with this directive is set for September 20.

The decision follows reports of two major fraudulent transactions:

Mismanagement of Fixed Deposit at PNB: A fixed deposit of Rs 25 crore was made at PNB’s Rajajinagar branch by the Karnataka Industrial Area Development Board on September 14, 2011. Despite the deposit term ending, PNB allegedly released only Rs 13 crore. Efforts to resolve this issue over the past decade have been unsuccessful.Fraudulent Use of Deposit at SBI: A Rs 10 crore fixed deposit made by the Karnataka State Pollution Control Board at the former State Bank of Mysore, now part of SBI, was allegedly misused to settle loans for a private company using forged documents. Attempts to recover this amount have also failed.

A senior government official told that the banks have claimed the matter is sub judice, but this has not stopped the State Public Accounts Committee from deciding to halt business with these banks. The government has issued the circular to withdraw deposits and is awaiting a response from the banks, which have requested additional time to address the issues.

This move comes amid a heated political climate in Karnataka, with the BJP-led opposition clashing with the Congress-ruled state government. The controversy has intensified following the exposure of an alleged fund transfer scam involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. A suicide note from Chandrashekhar P, the corporation’s accounts superintendent, revealed details of the alleged scam, adding fuel to the political fire.

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Punjab National Bank(PNB) posts Q1 Results 159% surge in net profit

Punjab National Bank (PNB) on Saturday reported more than two-fold jump in standalone net profit at Rs 3,252 crore for June quarter FY25 helped by decline in bad loans and improvement in interest income.

The state-owned bank had posted a net profit of Rs 1,255 crore for the year-ago period. Total income in the quarter rose to Rs 32,166 crore from Rs 28,579 crore, PNB said in a regulatory filing.

The lender's interest income also increased to Rs 28,556 crore from Rs 25,145 crore in the same quarter a year ago.

Gross Non Performing Assets (NPAs) declined to 4.98 per cent of gross advances by June 2024 from 7.73 per cent in the same quarter a year ago.

Net NPAs too declined to 0.60 per cent from 1.98 per cent.

As a result, provisions for bad loans came down drastically to Rs 792 crore in April-June FY25 as against Rs 4,374 crore in the year-ago period.

On a consolidated basis, the bank reported a net profit of Rs 3,976 crore in the quarter under review as against Rs 1,342 crore a year ago.

The consolidated financial result of the bank comprises five subsidiaries and 15 associates. The capital adequacy ratio of the bank improved to 15.79 per cent at the end of June 2024 compared to 15.54 per cent in the year-ago period.

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This PSU bank will use Digital Technology for Transfer and Posting of Officers

Punjab National Bank(PNB) – one of the largest public sector banks in India is actively planning to use digital technology for transfer and posting of officers. Recently, PNB has launched ‘UDAAN’ portal to assess the performance of employees and as per the reports, transfers and postings would be determined and implemented through UDAAN portal and Circle Heads can only change 10% of such postings.

All India Punjab National Bank Officers’ Association has taken up this matter with the MD and CEO. AIPNBOA has requested the top management to address the shortcomings and issues that may arise due to use of technology in transfer and posting.

Performance Assessment Based on Tenure: Officer A was posted in a branch for eight months, during which the year-over-year performance declined. Officer B was then posted in the same branch for four months and managed to bring remarkable improvements. However, the digital system might unfairly penalize Officer B for the overall decline, failing to recognize the efforts and context of the shorter tenure. A more human-centric approach would consider the qualitative improvements and efforts made by Officer B during their tenure.

In cases where a branch manager has brought in significant business but faces a setback due to the withdrawal of a big-ticket deposit, the system would consider it as a performance issue. However, the Circle Head is aware of the manager’s capabilities.Quarterly Performance Reviews for Marketing Officers: Marketing officers often face issues when their performance is assessed quarter on quarter. A single bad quarter can skew their overall evaluation, disregarding external factors and cumulative progress made over a more extended period. A digital assessment system may not accurately capture the complexity of their work and the incremental improvements vital for long-term success.

Currently, officers are divided into two categories: those working in the field and those in administrative offices. If transfer and posting decisions are solely based on officers’ preferences, it would perpetuate a permanent divide. In the past, there was a practice of rotating officers between administrative offices and the field, allowing everyone to experience both aspects of the job. However, this practice has been abandoned, leading to one segment feeling dominant over the other.

These examples highlight the limitations of a digital approach in evaluating and managing human resources. What you think of this approach, let us know in the comment section.

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Punjab National Bank(PNB) Q4 Net profit zooms 160%

Punjab National Bank on May 9 reported a 160 percent surge in its net profit to Rs 3,010.27 crore in the fourth quarter of the financial year 2023-24.On a sequential basis, the state-run lender's net profit zoomed 35 percent.

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In the reporting quarter, the bank's gross non-performing assets (NPA) ratio stood at 5.73 percent, as against 6.24 percent a quarter ago, and 8.74 percent last year.

Its net NPA stood at 0.73 percent as on March 31, 2024, as against 0.96 percent in the previous quarter and 2.72 percent in the year-ago period.

In absolute terms, gross NPA declined by Rs 20,985 crore to Rs 56,343 crore as on March 2024 from Rs 77,328 crore as on March 2023. Net NPA declined by Rs 15,786 crore from March 2023 to Rs 6,799 crore as on March 2024.

Provision Coverage Ratio (including TWO) improved by 849 basis points (bps) on-year to 95.39 percent as on March 2024. Provision Coverage Ratio (Excluding TWO) improved by 171 bps to 87.9 percent from 70.8 percent in March 2023.

Slippage ratio improved on-year by 159 bps to 0.72 percent in FY24 from 2.31 percent in FY23.

Savings Deposits increased to Rs 4.80 lakh crore registering a on-year growth of 3.5 percent. Current Deposits grew by Rs 3,565 crore as on March 2024 to Rs 72,201 crore on Quarter-on-Quarter basis.

CASA Deposits increased to Rs 5.53 lakh crore recording a on-year growth of 2.7 percent.

Total Retail credit increased by 12.6 percent to Rs 2.23 lakh crore in March 2024.

The bank grew impressively under Core Retail recording a on-year growth of 15.2 percent.

Within Core Retail Credit, Housing Loan grew by 14.5 percent to Rs 93,694 crore, vehicle loan posted a growth of 25.6 percent to reach Rs 20,692 crore, and personal loan increased by 14.4 percent to Rs 20,766 crore.

Agriculture Advances grew by 11.3 percent on-year to Rs 1.58 lakh crore and MSME Advances increased on-year by 7.0 percent to Rs 1.39 lakh crore in March 2024.

Domestic Net Interest Margin stands at 3.25 percent in Q4 FY24.

Global Yield on Advances improved on-year by 50 bps to 8.44 percent in Q4 FY24 and by 112 bps to 8.28 percent in FY24.

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BoB, PNB among 6 PSU banks with high NPAs

Non Performing asset (NPA) is a loan or advance for which the principal or interest payment has remained overdue for a period of 90 days or more. According to data from Trendlyne, SBI, Bank of Baroda, and PNB are among the 6 PSU banks that reported the highest NPAs in Q3 of FY24. Here's the list:

Bank of India(BoI)

The net NPA of Bank of India stood at 1.41% in Q3FY24, which is the highest among PSU Banks. The PE ratio of the stock is 9.66. Bank of India has a market cap of Rs 61,870 crore.

Union bank of India

Union Bank of India reported a net NPA of 1.08% in Q3FY24. The PE ratio of the stock is 7.74. The firm's market cap is at Rs 1,02,773 crore.

Punjab National Bank (PNB)

Punjab National Bank (PNB) reported a net NPA of 0.96% in Q3FY24. The PE ratio of the stock is at 17.76. Punjab National Bank's market cap is at Rs 1,35,490 crore.

Bank of Baroda(BoB)

The net NPA ratio of Bank of Baroda stood at 0.7% in the December quarter of FY24. The PE ratio of the stock is 7.3. It has a market cap of Rs 1,38,153 crore.

State Bank of India (SBI) 

The net NPA ratio of the State Bank of India (SBI) stood at 0.64% in Q3FY24. The PE ratio of the stock is 10.26. SBI has a market cap of Rs 6,65,731 crore.

Indian Overseas Bank(IOB)

Indian Overseas Bank reported a net NPA of 0.62% in the December quarter of FY24. The PE ratio of the stock is at 50.36, while its market cap is at Rs 1,26,457 crore.

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Punjab National Bank(PNB) Q3 profit jumps over three-fold

State-owned Punjab National Bank (PNB) on Thursday posted an over three-fold increase in its profit to Rs 2,223 crore for the third quarter ended December 2023.

The bank had earned a net profit of Rs 629 crore in the same quarter a year ago.

Its total income increased to Rs 29,962 crore during the quarter under review against Rs 25,722 crore in the same period last year, PNB said in a regulatory filing.

The bank's interest income rose to Rs 27,289 crore compared to Rs 22,384 crore in the third quarter of the previous fiscal.

Its gross non-performing assets (NPAs) declined to 6.24 per cent of the gross loans at the end of December 2023 from 9.76 per cent a year ago.

Similarly, net NPAs or bad loans came down to 0.96 per cent from 3.30 per cent at the end of the third quarter of the previous fiscal.

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Punjab National Bank(PNB) Q2 Net profit zooms 327%

 

Public sector lender Punjab National Bank (PNB) reported a 327 per cent year-on-year (YoY) rise in net profit at Rs 1,756 crore for the September quarter compared with Rs 411.27 crore in the corresponding quarter of the last fiscal. Net interest income (NII), the difference between the interest earned from lending activities and the interest paid, rose to Rs 9923 crore in the September quarter of the current fiscal.

Operating profit of PNB climbed 11.66% to Rs 6216.43 crore in Q2 against Rs 5567.21 crore in the September quarter of the last fiscal. 

Asset quality of the lender improved in the last quarter. Gross NPAs fell to Rs 65,563.12 crore in Q2 against Rs 87,034.79 crore in the September 2022 quarter. Gross NPA ratio slipped to 6.96% in Q2 against 10.48% in the corresponding quarter of the previous fiscal. 

Debt to equity ratio of PNB fell to Rs 0.76 in Q2 against 0.91 in the September 2022 quarter. 

Net NPA ratio slipped to 1.47% in Q2 against 3.80% in the September 2022 quarter. Net NPAs declined to Rs 13,114.12 crore in Q2 compared to Rs 29,348.16 crore in the September 2022 quarter.

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