Punjab National Bank Financial Results for the Quarter Ended 30th September 2023

 by Priya Jadhav

New Delhi, 26 October 2023: Punjab National Bank (PNB) announced their Financial Results for the Q2 and H1 FY24. Net Profit Increased to Rs 1,756 Crore during Q2 FY24, with YoY growth of 327.14%. Operating Profit was at Rs 6,216 Crore during Q2 FY24 grew by 11.67% on YoY basis. Net Interest Income increased by 20% YoY to Rs 9,923 Crore in Q2 FY24. Global NIM improved by 11 bps on YoY basis to 3.11% in Q2 FY24 from 3.00 % in Q2 FY23. GNPA ratio improved by 352 bps on YoY basis to 6.96% as on September’23 from 10.48% as on September’22. NNPA ratio improved by 233 bps on YoY basis to 1.47% as on September’23. Provision Coverage Ratio (including TWO) improved by 795 bps on YoY basis to 91.91% as on September’23 from 83.96% as on September’22. Credit Cost declined by 45 bps on YoY basis to 1.31% in Q2 FY’24. Global Business increased by 11.26% on YoY basis to Rs 22,51,631 Crore as on September’23 as against Rs 20,23,713 Crore as on September’22. Global deposits grew by 9.75% on YoY basis to Rs 13,09,910 Crore as on September’23. Global Advances grew by 13.43% on YoY basis to Rs 9,41,721 Crore as on September’23. RAM share improved by 218 bps on YoY basis to 55.63% as on September’23.

 

Savings deposits increased to Rs 4,71,238 Crore as on September’23 from Rs 4,51,707 Crore as on September’22. Current deposits were at Rs 67,038 Crore as on September’23. CASA Share (Domestic) stands at 42.15% as on September’23 as compared to 41.90% in June’23. Core Retail Advances grew YoY by 16.5% to Rs 1,47,247 Crore as on September’23.

 

Within Core Retail Credit, Housing Loan increased by 13.7% on YoY basis to Rs87,430 Crore. Vehicle loan increased by 28.3% on YoY basis to Rs 18,010 Crore. Personal Loan increased by 39.0% on YoY basis to Rs19,868 Crore. Total Retail increased by 40.42% YoY basis from Rs 1,55,409 Crore in September’22 to Rs 2,18,230 Crore in September’23. Agriculture Advances grew by 4.49% on YoY basis from Rs 1,40,303 Crore in September’22 to Rs1,46,598 Crore in September’23. MSME Advances grew by 6.48% on YoY basis from Rs 1,30,219 Crore in September’22 to Rs1,38,661 Crore in September’23.

 

Profitability witnessed a growth. Net Profit of the Bank for HY1FY24 was at Rs 3,012 Crore recording growth of 318.3% on YoY basis. Operating Profit of the Bank for HY1FY’24 was at Rs 12,184 Crore for HY1FY’24 recording growth of 11.3% on YoY basis. Net Interest Income of the Bank for HY1FY’24 was at Rs 19,427 Crore for HY1FY’24 recording growth of 22.8% on YoY basis. Total Income of the Bank for Q2 FY’24 was at Rs 29,383 Crore and Rs 57,962 Crore for HY1FY’24 recording growth of 27.7% and 30.9%, respectively on YoY basis. Total Interest Income of the Bank for Q2 FY’24 was at Rs 26,355 Crore and Rs 51,500 Crore for HY1FY’24 recording growth of 30.8% and 32.4%, respectively on YoY basis. Non-interest income for Q2 FY’24 was at Rs 3,028 Crore and Rs 6,462 Crore for HY1FY’24 recording growth of 6.4% and 20.0%, respectively on YoY basis. Total Interest Expenses of the Bank for Q2 FY’24 was at Rs 16,432 Crore and Rs 32,074 Crore for HY1FY’24 increased by 38.3 % and 38.9%, respectively on YoY basis. Operating Expenses for Q2 FY’24 was at Rs 6,735 Crore and Rs 13,705 Crore for HY1FY’24 increased by 21.3 % and 33.7%, respectively on YoY basis.

 

Global NIM improved by 18 bps on YoY basis to 3.09% in HY1FY24 from 2.91% in HY1FY’23. Global Yield on Advances was at 8.15% in Q2FY’24 and 8.10% in HY1 FY’24 as compared to 6.91% in Q2FY’23 and 6.70% in HY1FY’23. Global Cost of Deposits increased YoY by 96 bps to 4.86% in Q2FY’24 and 94 bps to 4.79% for HY1FY’24. Yield on Investment improved YoY by 36 bps to 6.87% in Q2FY’24 and 35 bps to 6.79% for HY1FY’24. Return on Assets (RoA) improved YoY by 34 bps to 0.46% in Q2FY’24 and 29 bps to 0.40% for HY1FY’24. Return on Equity (RoE) improved YoY by 759 bps to 10.15% in Q2FY’24 and 652 bps to 8.82% for HY1FY’24. Business per employee improved to Rs 22.65 Crore in September’23 from Rs 20.01 Crore in September22. Business per branch improved to Rs 217.65 Crore in September’23 from Rs 197.19 Crore in September’22. Net profit per employee improved to Rs 7.20 lakh in Q2FY’24 from Rs1.65 lakh in Q2FY’23. Net profit per branch improved to Rs 69.21 lakh in Q2FY’24 from Rs 16.24 lakh in Q2FY’23.

Gross Non-Performing Assets (GNPA) were at Rs 65,563 Crore as on September’23 as against Rs 87,035 Crore as on September’22 declined by Rs 21,472 crore on YoY basis. Net Non-Performing Assets (NNPA) were at Rs 13,114 Crore as on September’23 as against Rs 29,348 Crore as on September’22 declined by Rs 16,234 crore on YoY basis. Provision Coverage Ratio (PCR) Excluding TWO improved by 1372 bps YoY to 80.0% in September’23 from 66.28% in September’22. Credit Cost improved to 1.67% in H1FY’24 from 2.13% in HY1FY’23. Slippage ratio improved YoY by 248 bps to 0.86 % in Q2 FY24 from 3.34 % in Q2FY’23 and improved YoY by 239 bps to 0.85% in H1FY’24 from 3.24% in HY1FY’23.

Capital Adequacy (CRAR) improved from 14.74% as on September’22 to 15.09% as on September’23. Tier-I is at 12.02 % (CET-1 was at 10.23%, AT1 was at 1.79%) and Tier-II is at 3.07% as at September’23.

As on 30th September’23, the PNB has 10,092 number of Domestic branches. Rural: 3905 (39%), Semi-Urban: 2461 (24%), Urban: 1998 (20%) & Metro: 1728 (17%), 2 International Branches, 12645 number of ATMs and 20447 BCs.

Priority Sector Advances exceeded the National Goal of 40% and was at 41.6 % of ANBC. Agriculture advances exceeded the National Goal of 18% and was at 18.70% of ANBC. Credit to Small & Marginal Farmers exceeded the National Goal of 10% and was at 10.84% of ANBC. Credit to Weaker Sections exceeded the National Goal of 12% and was at 14.44 % of ANBC. Credit to Micro Enterprises exceeded the National Goal of 7.50% and was at 7.67 % of ANBC.

PMJDY account increased to 479 lakhs as on September’23 from 441 Lakh in September’22. Enrollment under PMJJBY, PMSBY & APY increased in September 2023. Details are as under:

(No. in Lacs)

ANSURAKSHA SCHEME ENROLLMENT UP TO	30.09.2022	30.09.2023
Pradhan Mantri Jeevan Jyoti Bima Yojana	48.46	60.31
Pradhan Mantri Suraksha Bima Yojana	194.61	239.07
Atal Pension Yojana	23.76	31.71

Number of Digital Transactions increased to 287 Lakh during H1FY’24 from 187 lakh in H1FY’23. Internet Banking Services (IBS) users increased to 407 Lakhs as on September’23 recorded 10% YoY growth as against 370 Lakh as on September’22. Mobile Banking Users increased to 442 Lakhs as on September’23 recorded 18% YoY growth as against 373 Lakh as on September’22.

PNB One Mobile App - Average daily downloads increased from 24K in Q2 FY’23 to 36K in Q2FY’24. Average daily active users increased from 4.5 Lakh in Q2 FY’23 to 7.7 Lakh in Q2 FY’24. Average Daily login improved from 9 Lakh in Q2 FY’23 to 15 Lakh in Q2 FY’24. Average Daily Transactions improved from 76K in Q2 FY’23 to 143K in Q2 FY’24. Total number of Users activated increased from 69 Lakh as on September’22 to 153 Lakh as on September’23.

New Digital initiatives include Rupay Credit Card on BHIM PNB App, Cash withdrawal using UPI, UPI International on BHIM PNB App, Integrated Payments and Collection Services for Corporate and Institutional Customers as well as Disable/Block Debit Card & UPI through Whatsapp.

Value addition across business verticals included Transaction based leads for retail products from business standpoint, on profitability: Customer Churn Prediction & Remedial Action –Next Best Offer/ Next Best Action, and Analytics based digital collection management system (Mechanism to priorities collection)

From HR Transformation Project, Clarity of Roles & Expectations from each employees with well defined, measurable KRAs were introduced. Comprehensive Leadership Development Programme (LDP) to prepare future Bank Leaders on behavioural aspects for 900+ Officers. Reorientation of employees in terms of Knowledge, Skills & Attitude. Clear tracking, measurement & visibility of performance metrics to identify improvement areas. Performance Dashboard & Performance Monitoring System (PMS) profiler tools.

As pre the awards and accolades received in last quarter, PNB was felicitated with ‘Green Ribbon Champions’ award under the category- ‘CSR Green Initiative of the Year’ for planting more than 1 lakh trees under the PNB Palaash. PNB was also honoured with the 1st Prize in Rajbhasha Kirti for the  year 2022-23  at the  Hindi Diwas Celebrations during Third All India Official Language Conference 2023. The Bank was also awarded the Rajbhasha Kirti Second prize for the year 2022-23 for the in-house magazine PNB Pratibha.