PNB Share Price

PNB Q2 FY25 Results: 145% Profit Surge, Strong NII, and Reduced NPAs Reflect Bank’s Growth

Overview of PNB’s Q2 FY25 performance, underscoring the 145% net profit growth and improvement across financial indicators.

1. Interest Income Growth

• PNB recorded a 13% YoY increase in interest income, reaching Rs 29,875 crore, compared to Rs 26,355 crore in Q2 FY24, showcasing the bank’s revenue growth trajectory.

2. Net Interest Income (NII) and Net Interest Margin (NIM)

• NII rose by 5.99% YoY, totaling Rs 10,517 crore, up from Rs 9,923 crore in the prior year’s quarter.
• NIM stood at 2.99% for HY1FY25 and 2.92% for Q2 FY25, indicating stable interest margin performance in a competitive market.

3. Increase in Interest Expenses

• The bank’s interest expenses rose 18% YoY, reaching Rs 19,358 crore, up from Rs 16,432 crore in Q2 FY24, reflecting increased lending costs alongside growing revenues.

4. Market Response and Stock Performance

• Following the release of Q2 earnings, PNB’s stock surged by 7% on NSE, reaching a peak of Rs 101.95, reflecting market confidence in PNB’s growth strategy.

5. Gross and Net NPA Reduction

• Gross NPAs dropped to Rs 47,582 crore, compared to Rs 51,263 crore in Q1 FY25 and Rs 65,563 crore in Q2 FY24.
• Net NPAs decreased to Rs 4,674 crore, reflecting a marked improvement YoY and QoQ, with net NPAs at 0.46% for Q2 FY25.

6. Profitability Indicators

• Return on Assets (RoA) increased to 1.02% from 0.46% YoY, showing improved asset utilization efficiency.
• Return on Equity (RoE) jumped to 19.91% in Q2 FY25 from 10.15% in the previous year, reflecting stronger returns on shareholders’ equity.

7. Operating Profit Growth

• Operating profit rose by 10.25% YoY, amounting to Rs 6,853 crore in Q2 FY25, showcasing improved operational efficiency and cost management.

Conclusion:

PNB’s Q2 FY25 results showcase a strong financial performance marked by a significant 145% rise in net profit, substantial revenue growth, and improved profitability indicators. The bank demonstrated effective cost management with a 10.25% increase in operating profit, alongside a reduction in both gross and net NPAs, reflecting strengthened asset quality. PNB Share Price, PNB’s stable Net Interest Margin (NIM) and impressive returns on assets and equity signal a positive trajectory in a competitive market. Investor confidence is underscored by a 7% increase in stock price, highlighting PNB’s promising growth strategy and resilience in the financial sector.

FAQs

1.What was the growth in PNB’s net profit for Q2 FY25?

A. PNB’s standalone net profit jumped 145% YoY to Rs 4,303 crore in Q2 FY25.

2.How much did PNB’s interest income increase in Q2 FY25?

A. Interest income rose 13% YoY, reaching Rs 29,875 crore.

3.What is the Net Interest Margin (NIM) reported for Q2 FY25?

A. PNB’s NIM was 2.92% in Q2 FY25.

4.How did the stock respond to PNB’s Q2 earnings?

A. PNB’s stock climbed 7% on NSE, hitting Rs 101.95 after the results announcement.

5.What changes were noted in Gross NPAs in Q2 FY25?

A. Gross NPAs dropped to Rs 47,582 crore, reflecting a YoY reduction.

6.How much were PNB’s net NPAs in Q2 FY25?

A. Net NPAs decreased to Rs 4,674 crore, marking an improvement over prior quarters.

7.What were PNB’s key profitability metrics for Q2 FY25?

A. Return on Assets (RoA) reached 1.02%, and Return on Equity (RoE) improved to 19.91%.

8.What caused the 18% increase in interest expenses?

A. The rise in interest expenses was due to higher borrowing costs amid increasing revenues.

9.What was PNB’s operating profit growth?

A. Operating profit rose by 10.25% YoY, totaling Rs 6,853 crore in Q2 FY25.

10.What do these results indicate about PNB’s performance?

A. PNB’s Q2 FY25 performance underscores solid profit growth, reduced NPAs, and efficient asset utilization, highlighting positive momentum.

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