Due to a significant increase in its net interest income (NII) and a decrease in credit expenses, Punjab National Bank, a public lender, saw a staggering 327.14 percent year-over-year (Y-o-Y) increase in net profit for the July–September quarter (Q2FY24) to ₹1,756 crore.
The Delhi-based bank’s profit increased sequentially from ₹ 1,255 crore in the June quarter (Q1FY24).
On the BSE, the bank’s shares closed 0.5% higher at ₹69.81 a share. At the end of September, its capital adequacy ratio (CAR) was 15.09 percent, with tier-1 at 12.02 percent.
A K Goel, Managing Director and Chief Executive of PNB, stated that there was no urgent need for capital. During the first half that concluded in September, the bank raised ₹ 6,090 crore through extra tier-I and tier-II bonds.
In Q2, the lender’s NII increased by 29% year over year to ₹ 9,923 crore. NII increased sequentially from ₹ 9,544 crore in FY24’s first quarter.
PNB’s net interest margin (NIM) increased from 3% in the same period last year to 3.11 percent in Q2. NIM grew sequentially from 3.08 percent in Q1FY24, as per a presentation given to analysts. For FY24, the bank has projected that NIM will be between 2.9% and 3%.
In the upcoming quarters, the repricing of deposits totalling ₹ 1 trillion will influence the NIM. Bank is prioritizing NII, according to Goel.
To around ₹3,028 crore, the non-interest income, which includes fees, commissions, treasury income, and recoveries, decreased 6.4% year over year.
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