Punjab National Bank (PNB) has posted a sharp rise in its quarterly performance, signaling renewed strength in the banking sector amid favorable market trends and improving economic indicators.
Strong Q4 Performance Boosted by Interest Income
PNB reported a 52% year-on-year increase in net profit, reaching ₹4,567 crore for the quarter ending March 31, 2025. This is a substantial improvement from ₹3,010 crore during the same quarter last year. The state-owned bank’s total income climbed to ₹36,705 crore, compared to ₹32,361 crore in Q4 FY24, driven largely by robust growth in interest income.
Interest income surged to ₹31,989 crore in Q4 FY25, reflecting consistent credit demand and effective lending strategies. The results place PNB among the top performers in the public sector banking space this quarter, reinforcing positive sentiment across the financial sector.
Asset Quality Improves, Capital Base Strengthens
Notably, the bank’s asset quality showed marked improvement. Gross Non-Performing Assets (NPAs) fell to 3.95% of gross advances, down from 5.73% a year earlier. Net NPAs also declined to 0.40%, compared to 0.73% at the end of March 2024. This reduction reflects better credit monitoring and recovery practices, contributing to investor confidence.
Meanwhile, the capital adequacy ratio rose to 17.01% from 15.97%, underlining a stronger financial buffer and improved risk management in line with regulatory standards.
Full-Year Profit Doubles; Dividend and Bond Plans Announced
For the full financial year 2024–25, PNB reported a net profit of ₹16,630 crore, doubling from ₹8,245 crore the previous year. Total income grew to ₹1,38,070 crore, up from ₹1,20,285 crore in FY24. These results reflect both top-line growth and disciplined cost control.
In a significant move for shareholders, the board has proposed a dividend of ₹2.90 per equity share (face value ₹2), subject to approval in the upcoming AGM. This marks a continued focus on delivering value to stakeholders amid the ongoing bank rally.
Additionally, the board approved plans to raise up to ₹8,000 crore through Basel III-compliant bonds—split evenly between Additional Tier-I and Tier-II instruments. These will be issued in tranches during FY26 to support future growth and maintain regulatory buffers.
For more information, visit the official PNB website.
With improving asset quality, rising profitability, and strategic fundraising initiatives, PNB’s latest financial report aligns well with current market trends, offering a positive outlook for the broader banking and financial services sector.