PNB Q4FY23 PAT up 5-fold at Rs1,864cr on lower provisioning in the quarter

PNB reported 31.8% growth in total revenues for the March 2023 quarter on consolidated basis at Rs28,132cr. Revenue growth was 7.65% in sequential terms for Q4FY23. For the quarter, PNB saw growth in revenues across treasury and a doubling of revenues from corporate banking. However, retail banking revenues were lower on a yoy basis. Revenues from other banking operations were sharply lower on a yoy basis. 

In terms of the operating profit performance of the various heads, treasury profits were 10% higher yoy while the corporate banking vertical narrowed its losses, almost to neutral levels. Retail banking operating profits also reported 10% growth yoy. The big profit driver in the quarter was the fall in provisions and contingencies in the quarter by more than 20% to Rs3,708 crore. 

Financial highlights for Mar-23 compared yoy and sequentially

 Punjab National Bank    
Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income

₹ 28,132

₹ 21,351

31.76%

₹ 26,134

7.65%

Operating Profit

₹ 6,338

₹ 5,307

19.43%

₹ 5,762

10.00%

Net Profit

₹ 1,864

₹ 338

451.11%

₹ 708

163.22%

      
Diluted EPS

₹ 1.69

₹ 0.31

 

₹ 0.64

 
Operating Margins

22.53%

24.86%

 

22.05%

 
Net Margins

6.63%

1.58%

 

2.71%

 
Gross NPA Ratio

8.74%

11.78%

 

9.76%

 
Net NPA Ratio

2.72%

4.80%

 

3.30%

 
Return on Assets (Ann)

0.32%

0.06%

 

0.17%

 
Capital Adequacy

15.50%

14.50%

 

15.15%

 

 

For Q4FY23, the operating profits were up 19.43% yoy while the net profits were up 451% yoy due to provisions falling sharply in Q4FY23. Operating profits were assisted by an improvement in the NII and the NIM spread. Gross NPAs and Net NPAs fell sharply but continued to be high in absolute terms. The annualized ROA was still at a very low level of 0.32%, despite the improvement. The provision coverage ratio as on March 2023 improved yoy from 81.6% to 86.9%.

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