Punjab National Bank Financial Results for the Quarter Ended 31th December 2022

Key Highlights

Net profit for Q3 FY23 was at ₹629 Crore and grew by 53.04% on QoQ basis.
Operating Profit was at ₹5716 Crore during Q3 FY23 grew by 12.61% on YoY basis.
Global NIM improved by 23 bps to 3.16% in Q3 FY23 from 2.93% in Q3FY22. Global NIM for 9MFY23 improved by 32 bps on YoY basis.
Net interest income increased by 17.63% YoY to ₹9179 Crore in Q3 FY23.
Global Gross Advances grew by 13.43% on YoY basis to ₹856757 Crore in December’22.
Core retail credit grew YoY by 13.54% to ₹130421Cr in December’22.
Global Deposits grew by 7.37% on YoY basis to ₹1210359 Crore as at the end of December’22 as against ₹1127317 Crore in December’21.
GNPA ratio improved by 312 bps to 9.76% in December’22 from 12.88% in December’21. There was an improvement of 72 bps on QoQ basis.
NNPA ratio improved by 160 bps to 3.30% in December’22 from 4.90% in December’21. There was an improvement of 50 bps on QoQ basis.
PCR including TWO improved by 332 bps to 85.17% in December’22 from 81.85% in December’21.
Capital Adequacy for December’22 was at 15.15% and it improved by 24 bps on YoY basis and 41 bps on QoQ basis.

Business Performance in Key Parameters (December’22)

Global Gross Business increased by 9.80% on YoY basis to ₹2067116 Crore as at the end of December’22 as against ₹1882623 Crore in December’21.
Savings deposits grew by 4.04% to ₹451945 Crore in December’22.
Current deposits were at ₹64589 Crore in December’22.
CASA Share (Domestic) stands at 43.72% of Deposits as on December’22.
Within Core Retail Credit:
Housing Loan increased by 9.16% on YoY basis to ₹78684 Crore.
Vehicle loan increased by 39.51% on YoY basis to ₹15404 Crore.
Personal Loan increased by 40.40% on YoY basis to ₹15805 Crore.
Agriculture Advances was at ₹138201 Crore as on December’22.
MSME Advances was at ₹124728 Crore as on December’22.
As on December’22, Share of RAM is 53.94% and YoY growth is 11.20%.

Profitability

Net interest income was at ₹9179 Crore for Q3FY23 and ₹24993 Crore for 9MFY23. It grew by 17.6% and 16.8% respectively.
Total Income of the Bank for Q3FY23 was at ₹25722 Crore and ₹70018 Crore for 9MFY23. It grew by 16.8% and 5.9% respectively on YoY basis.
Total Interest Income of the Bank for Q3FY23 was at ₹22384 Crore and ₹61295 Crore for 9MFY23. It grew by 15.8% and 9.0% respectively on YoY basis.
Non-interest income for Q3FY23 was at ₹3338 Crore, grew by 23.6% on YoY basis. Fee based income was at ₹1331 Crore for Q3FY23 and ₹4389 Crore for 9MFY23. It grew by 8.8% and 12.8% respectively on YoY basis.

Efficiency Ratio

Global Cost of Deposits stood at 4.15% in Q3FY23 as compared to 3.90% in Q2FY23.
Global Yield on Advances at 7.23% in Q3 FY23 as compared to 6.91% in Q2FY23.
Business per employee improved to Rs 2055 lakhs in December’22 from 1883 lakh in December’21.
Business per branch improved to Rs 20074 lakh in December’22 from 18024 lakh in December’21.
Operating profit per employee improved to 23.1 lakh in Q3FY23 from 21.0 lakh in Q3FY22.

Asset Quality

Gross Non-Performing Assets (GNPA) were at ₹83584 Crore as on December’22 as against
₹97259 Crore as on December’21 declined by 14.06% on YoY basis.
Net Non-Performing Assets (NNPA) were at ₹26363 Crore as on December’22 as against
₹33879 Crore in as on December’21 declined by 22.18% YoY basis.
Provision Coverage Ratio Including TWO improved by 332 bps YoY to 85.17% in December’22

Capital Adequacy

CRAR was 15.15% for December’22. Tier-I is at 12.21% (CET-1 was at 10.84%, AT1 was at 1.37%) and Tier-II is at 2.94% as at December’22.