PNB Q4 profit surges 52% to Rs 4,567 crore, to raise Rs 8,000 crore via bonds in FY26

New Delhi: State-owned Punjab National Bank (PNB) on Wednesday reported 52 per cent rise in net profit at Rs 4,567 crore for March quarter FY25 helped by robust business growth and recovery.

The lender had earned a net profit of Rs 3,010 crore in the year-ago period.

During the quarter, the bank's total income increased to Rs 36,705 crore from Rs 32,361 crore a year ago, PNB said in a regulatory filing.

Interest income grew to Rs 31,989 crore from Rs 28,113 crore in the fourth quarter of previous financial year.

Net Interest Income (NII) in the quarter also improved to Rs 10,757 crore from Rs 10,363 crore in the same period a year ago.

Speaking to the media after the board meeting, PNB MD and CEO Ashok Chandra said the growth in profit can be attributed to overall business growth, recovery in technically written off accounts and treasury income, among others.

Total business (deposit and advances) of the bank rose to Rs 26.83 lakh crore, registering a growth of 14 per cent. Recovery in technically written off accounts stood at Rs 4,926 crore in FY25 while treasury income spiked to Rs 4,314 crore from Rs 1,157 crore earned in the previous financial year.

He further said the bank expects credit growth of 11-12 per cent while deposit to rise by 9-10 per cent in the current financial year.

As far as corporate loans are concerned, he said, it should witness 9-10 per cent growth despite uncertainty over tariff with focus on renewal energy, road and ports.

Chandra said the bank's capital adequacy ratio remains high at 17 per cent and therefore there is no need for equity capital during the current financial year.

However, the board approved a proposal to raise up to Rs 8,000 crore through issuance of Basel III-compliant bonds to be raised in one or more tranches during 2025-26.

Of this, he said, Rs 4,000 crore to be mobilised via additional Tier-I Bonds and remaining through Tier- II Bonds.

On the expansion plan, he said, the bank intends to add another 200 branches during the ongoing financial year and also recruit 3,000 staff and officers.

Asked if the declining interest rate cycle would put pressure on the bank's net interest margin (NIM), Chandra said, he expects to maintain NIM of 2.8-2.9 per cent in FY26.

However, there may be some challenges on net interest income and NIM during the first half of the current financial year, he said, adding, deposit rates have almost peaked and there may be moderation of rates on liability side by 30-40 basis points.

The bank's NIM stood at 2.93 per cent at the end of March 2025.

On the asset quality front, the bank's gross Non-Performing Assets (NPAs) moderated to 3.95 per cent of gross advances as compared to 5.73 per cent by the end of March 2024.

Similarly, Net NPAs came down to 0.40 per cent from 0.73 per cent.

The bank's capital adequacy ratio rose to 17.01 per cent from 15.97 per cent at the end of FY24.

For the entire financial year 2024-25, the bank's profit doubled to Rs 16,630 crore from Rs 8,245 crore in the previous year. Total income rose to Rs 1,38,070 crore from Rs 1,20,285 crore in the previous financial year.

The bank's board has recommended a dividend of Rs 2.90 per equity share of face value of Rs 2 each for 2024-25 subject to approval of shareholders.