Punjab National Bank (PNB) has posted its Q4FY25 earnings, delivering a year-on-year (YoY) net profit growth of 51.7% to Rs 4,567 crore, up from Rs 3,010 crore. While other income and robust advances buoyed the results, analysts flagged concerns over a drop in Net Interest Margin (NIM) and higher-than-expected provisions.
Brokerages remain cautiously optimistic about the PSU bank’s future performance.
PNB Q4: Key Highlights
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Net Profit: Rs 4,567 crore (up 51.7% YoY)
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Net Interest Income (NII): Rs 10,757 crore vs Rs 10,363 crore YoY
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NIM: 2.81%, down from 2.93% in Q3 and 3.10% YoY
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Advances & Deposits Growth: 13.6% YoY and 14.4% YoY respectively
Analyst Views
Nirmal Bang noted that profit was supported by strong growth in other income, deposits, and advances. However, NIM compression due to a decline in yield on advances and a rise in the cost of funds weighed on the margins.
Despite these challenges, business growth outpaced the industry average, and asset quality improved through recoveries and write-offs.
Motilal Oswal Financial Services (MOFSL) described Q4 as a "moderate" quarter, with rising slippages in the agriculture and MSME segments, though offset by better recoveries. They maintained their earnings per share (EPS) estimates and reiterated a Buy rating with a target price of Rs 125.
CLSA upgraded its stance to 'Accumulate', raising its target to Rs 120 from Rs 80. Nirmal Bang also raised its target slightly to Rs 102.
Disclaimer
This article is for informational purposes only and is not intended as investment advice. Jobaaj News strongly advises readers to consult with certified financial advisors before making any investment decisions.
