Punjab National Bank (PNB) on Monday reported a standalone net profit of Rs 4,303.5 crore in the July-September quarter of the current 2024-25 fiscal year (FY25). The lender clocked a huge jump of 145 per cent in the profit against Rs 1,756 crore reported in the corresponding quarter of the preceding 2023-24 fiscal year (FY24).


The lender logged a 2.5 times jump in its bottomline in the quarter under review attributed to a sharp decline in new provisions and contingencies, reported Livemint. The net interest income of the bank climbed 6 per cent to Rs 10,517 crore in Q2FY25, against Rs 9,923 crore registered in the quarter ended September 30, 2023 a year earlier. The NII helps understand the interest earned by the bank after calculating the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors. 


The bank also saw an improvement in its asset quality in the second quarter as its gross non-performing assets slipped to Rs 47,582.25 crore. Comparatively, the lender’s GNPA stood at Rs 51,262.78 crore in the year-ago period.


The net NPA of the bank improved to Rs 4,674.24 crore in Q2FY25, in comparison to Rs 5,930.06 crore logged in the corresponding quarter in the preceding fiscal year. NPAs are loans or advances issued by the bank which are subject to late repayment or unlikely to be repaid by the borrower in full.


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The new provisions and contingencies of the bank decreased to Rs 288.01 crore in the quarter under review, in comparison to Rs 3,444.18 crore logged in the same July-September period last year.


The overall retail credit of the bank soared by 14.6 per cent on a year-on-year (YoY) basis to Rs 2,50,149 crore. As of September 30, 2024, the bank reported that it has 10,159 domestic branches and 2 international branches. About 63.31 per cent of the bank’s branches are located in rural and semi-urban areas.