Punjab National Bank (PNB) delivered solid results for Q4 FY25, posting an impressive 52% year-on-year (YoY) increase in net profit. The bank’s performance was boosted by steady growth in interest income, improved asset quality, and better cost management.
Along with this, PNB announced a dividend and laid out plans for raising capital in FY26. Let’s break down the key numbers and highlights.
PNB Q4 FY25 performance at a glance
| Metric | Q4 FY25 | Q4 FY24 | % Change |
| Net Interest Income (NII) | ₹10,757 crore | ₹10,363 crore | +3.8% |
| Operating Profit | ₹6,776 crore | ₹6,410 crore | +6% |
| Total Income | ₹36,705 crore | ₹32,404 crore | +13.4% |
| Gross NPA Ratio | 3.95% | 5.73% | -1.78% |
| Net NPA Ratio | 0.40% | 0.73% | -0.33% |
| Provision Coverage Ratio (PCR) | 96.82% | 95.39% | +1.43% |
| Net Profit | ₹4,567 crore | ₹3,010 crore | +52% |
PNB’s net profit surged 52% YoY to ₹4,567 crore in Q4 FY25, driven by increased interest income and improved asset quality. Net Interest Income (NII) rose by 3.8% to ₹10,757 crore, while the bank’s operating profit increased by 6% YoY to ₹6,776 crore.
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Key drivers of growth
Several factors contributed to PNB’s strong performance:
- Interest income growth: The steady increase in lending activity helped NII grow by 3.8% YoY.
- Improvement in asset quality: PNB’s GNPA ratio declined to 3.95%, from 5.73% last year, indicating improved asset management.
- Non-interest income growth: Non-interest income increased by 11% YoY to ₹4,716 crore, reflecting strong performance across fees and treasury operations.
Full-year performance for FY25
| Metric | FY25 | FY24 | % Change |
| Net Interest Income (NII) | ₹42,782 crore | ₹40,084 crore | +6.7% |
| Global Deposits | ₹15.67 lakh crore | ₹13.69 lakh crore | +14.38% |
| Global Advances | ₹11.17 lakh crore | ₹9.83 lakh crore | +13.56% |
| Retail Credit Growth | 16.5% | 13.5% | – |
| Net Profit | ₹16,630 crore | ₹8,252 crore | +102% |
For FY25, PNB’s net profit almost doubled, rising by 102% YoY to ₹16,630 crore. This was driven by strong growth in NII, deposits, and advances, as well as a significant improvement in asset quality.
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Dividend announcement and fundraising plans
PNB’s board declared a dividend of ₹2.90 per equity share for FY25, marking a 145% payout to shareholders. The dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Additionally, PNB has approved a proposal to raise up to ₹8,000 crore via Basel III-compliant bonds in FY26. This capital raise will be crucial for strengthening the bank’s financial position and supporting future growth.
Market reaction and outlook
Despite strong Q4 results, PNB’s share price ended 0.58% lower on the BSE at ₹94.00 on May 7, 2025. This may be attributed to broader market sentiment, which remained cautious amid geopolitical concerns and global economic uncertainties.
However, analysts remain optimistic about the stock’s long-term prospects, with some projecting a target price of ₹105 based on the bank’s solid fundamentals and growth trajectory.
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Looking ahead:
PNB is well-positioned for continued growth, with strategic initiatives focused on:
- Retail lending: Retail credit grew by 16.5% YoY, and PNB is likely to continue focusing on housing and vehicle loans, which have shown strong growth.
- Digital expansion: The bank is increasing its digital footprint to enhance customer experience and improve cost efficiency.
- Asset quality management: With reduced NPAs and higher provisioning, PNB is well-equipped to handle future risks.
For FY26, PNB has guided for an operating profit growth of 8-9%, with credit growth projected at 11-12%. The bank’s asset quality improvements and capital raising plans will further strengthen its financial stability.
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Conclusion
PNB’s Q4 FY25 results highlight the bank’s strong performance across key metrics, including a 52% YoY growth in net profit and significant improvements in asset quality.
The announcement of a dividend and capital raising plans provides additional value to shareholders, while the bank’s strategic focus on retail lending and digital banking positions it well for future growth.
Despite market volatility, PNB remains a solid contender in the banking sector, offering promising potential for long-term investors.
