Punjab National Bank (PNB) is an Indian multinational banking and financial services company based in New Delhi, India.
It was founded in 1895 and is one of the largest public sector banks in India, with over 10,000 branches across the country.
The bank provides a wide range of banking and financial services, including personal and corporate banking, investment banking, insurance, and wealth management services.
PNB is also involved in international banking and has established branches in several countries, including the United States, the United Kingdom, Dubai, Hong Kong, and Shanghai.
In addition, the bank has a large network of ATMs and digital banking services, including internet banking and mobile banking.
The bank is owned by the Indian government and is considered one of the country’s largest public-sector banks. As of 2019, the bank had a total of over 80,000 employees and over 82 million customers.
PNB has a strong reputation for providing excellent customer service and has won several awards for its services, including the “Best Bank in India” award from the Ministry of Finance in 2017.
The bank is also known for its commitment to social responsibility and has launched several initiatives to help promote financial literacy and inclusion in India.
Overall, Punjab National Bank is a major player in the Indian banking and financial services sector, providing a wide range of services to customers across the country and around the world
On January 30, Punjab National Bank (PNB) Ltd. reported a staggering 44 percent drop in net profit for the December quarter, coming in at Rs. 628.8 crore.
The sharp increase in provisions from a year ago hurt the bottom line.
Provisions made by the public sector lender increased from Rs 3,353 crore to Rs 4,713 crore in the reported quarter, a 40 percent increase. Bad loan provisions made up a portion of the total provisions, totaling Rs 3,908.1 crore, up 6.9% from the same time last year and 9.9% sequentially.
Despite its bad loan stockpile declining by 14% year over year, PNB has increased provisions. Gross non-performing assets (GNPAs), which were previously 12.88 percent of the total loan book, are now at 9.76 percent.
The net NPA ratio decreased from 4.90 percent to 3.30 percent. As of December, the outstanding NPA stockpile was Rs 83,583.9 crore, down from Rs 97,258.7 crore a year earlier.
The number of new slippages increased slightly from Rs 3,831 crore to Rs 3,865 crore.
Strong business growth:
Strong business growth can be defined as an increase in a company’s revenue, market share, customer base, or other measures of success over some time.
It can be achieved through various means, such as expanding into new markets, introducing new products or services, increasing marketing efforts, or improving operational efficiency. Strong business growth is typically seen as a positive indicator of a company’s health and success.
Net interest income for the bank increased by 17.6% annually to Rs 9,179 crore. To Rs 3338 crore, non-interest income increased by 23.6 percent. While fee income increased by 8.8%, the growth in non-interest income was slightly hampered by an 82 percent drop in profit from the sale of investments year over year.
A healthy 11.8 percent increase in domestic loans and a sequential rise in the net interest margin to 3.30 percent were the main drivers of NII growth.
The retail segment, which increased 13.5 percent year over year, was the main driver of loan growth. The safest asset class, mortgage loans, increased by 9.16% while riskier unsecured personal loans increased by 40% year over year.
The corporate loan book also saw a healthy 12.5 percent increase from the same time last year.
In contrast to PNB’s private sector competitors, who saw a significant increase in this category, loans to small businesses decreased by 1.76 percent.
The total amount of deposits increased by 7.37 percent, and the proportion of low-cost current and savings account deposits increased to 43.7% of the total.
Margins hold up
PNB was able to partially offset the increase in its cost of deposits by passing on policy rate increases through increases in loan rates. This, along with a lower proportion of loans with MCLR pricing, made sure that margins increased sequentially.
While the yield on advances increased to 7.35 percent from 7.29 percent, the bank’s cost of deposits increased to 4.15 percent from 4 percent a year earlier.
For the December quarter, the domestic net interest margin increased to 3.30 percent from 3.01 percent.
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