Punjab National Bank (PNB) has reported a significant boost in its financial performance for the first quarter of the fiscal year 2024, reflecting robust growth and improved asset quality. The state-owned bank's net profit soared to ₹1,255 crore, marking a substantial increase compared to ₹308 crore in the corresponding quarter of the previous year. This impressive rise in profit is attributed to higher net interest income and reduced provisions for bad loans.
In the June quarter, PNB's net interest income (NII) climbed to ₹8,213 crore, up from ₹7,273 crore in the same period last year, driven by improved interest margins and loan growth. The bank's total income rose to ₹24,313 crore from ₹21,294 crore, showcasing its strengthened financial position and efficient management.
A notable achievement for PNB this quarter is the significant reduction in its gross non-performing assets (NPAs), which dropped to 7.73% of gross advances from 11.27% a year ago. Similarly, net NPAs fell to 2.12% from 4.28%, indicating better asset quality and effective recovery efforts.
PNB's performance reflects its strategic focus on improving operational efficiency, enhancing asset quality, and maintaining robust capital adequacy. The bank's provision coverage ratio improved to 89.19%, and its capital adequacy ratio stood at 15.18%, well above the regulatory requirement.
This strong quarterly performance positions PNB for sustained growth and stability in the coming quarters, reinforcing its commitment to delivering value to its stakeholders.
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