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  5. Punjab National Bank jumps over 6% after Q1 net profit grows 159% YoY

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Punjab National Bank jumps over 6% after Q1 net profit grows 159% YoY

Upstox
By Upstox News Desk

2 min read | Updated on July 29, 2024, 10:31 IST

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SUMMARY

PNB revised its FY25 guidance for the GNPA ratio to approximately 4% from 5% and credit cost to below 0.5% from below 1%. Following this, shares of Punjab National Bank jumped nearly 6% on Monday morning.

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PNB
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Punjab National Bank gave guidance for improving its asset quality by reducing NPAs from 5% to 4% in FY25

Punjab National Bank shares skyrocketed 6.3% to ₹127.45 on July 29 after the lender reported a 159% year-on-year jump in its net profit for the quarter ended June 30, 2024. The overall market sentiment also remained positive on Monday as the benchmark indices Nifty and Sensex made fresh all-time highs in the early morning trade.

The net profit came in at ₹3,252 crore against ₹1,255 crore in the corresponding quarter of the previous fiscal. The net interest margins (both global and domestic) stand at nearly 3%. Net interest income (NII) rose 10% to ₹10,476 crore.

Total Income rose 12.5% to ₹32,166 crore in Q1 FY25 compared to ₹28,579 crore in the previous year. Savings deposits grew 4.4% YoY to ₹4,84,377 crore, and current deposits and CASA Deposits stood at ₹64,702 crore and ₹5.49 lakh crore, respectively. The net non-performing assets (NNPA) fell by ₹11,199 crore to ₹5,930 crore as of June from ₹17,129 crore in the same period the previous year. The global business registered a growth of 10.03% YoY, while global deposits rose 8.5%.

Managing Director of PNB, Atuk Kumar Goel, said: “With the improvement in capital position, the bank has decided to cut the proposed share sale size through Qualified Institutional Placement (QIP) to ₹5,000 crore from an earlier estimate of ₹7,500 crore.”

Further, the public sector lender revised its FY25 guidance for the GNPA ratio to approximately 4% from 5% and credit cost to below 0.5% from below 1%.

The stock touched a 52-week high of ₹142.9 on April 30, 2024, and a 52-week low of ₹58.60 on August 2, 2023. The company’s market capitalisation, at current market price of ₹127.25 per share, stands at ₹1.4 lakh crore. On a technical basis, PNB’s relative strength index (RSI) is at 48, and the stock is trading above the 5, 10, 50, 100, 150 and 200-day moving averages.

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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