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State-owned Punjab National Bank (PNB) on Saturday reported a more than three-fold jump in its standalone net profit for the first quarter of FY27, aided by steady growth in advances, improved asset quality and a healthy rise in core operating earnings, even as net interest income witnessed only modest growth.

The bank's net profit surged 213.6 per cent year-on-year to Rs 5,253 crore in the April-June quarter, compared with Rs 1,675 crore in the corresponding period last year.

Operational Performance and Growth

Operating profit rose 6.2 per cent to Rs 7,519 crore, while net interest income (NII) increased 2.1 per cent year-on-year to Rs 10,798 crore. The results indicate that while core interest income growth remained moderate, the bank continued to strengthen its balance sheet, with sustained improvement in asset quality, capital position and loan growth. PNB's global advances grew 12.7 per cent year-on-year to Rs 12.73 lakh crore as of June-end, outpacing the 8.5 per cent growth in global deposits, which stood at Rs 17.24 lakh crore. As a result, the bank's credit-deposit ratio improved to 73.8 per cent from 71.1 per cent a year ago. Global business grew 10.2 per cent year-on-year to Rs 29.98 lakh crore.

Significant Improvement in Asset Quality

The bank also reported another quarter of improvement in asset quality. Gross non-performing assets (GNPA) ratio declined by 100 basis points year-on-year to 2.78 per cent, while the net NPA ratio improved to 0.28 per cent from 0.38 per cent a year earlier. In absolute terms, gross NPAs fell by Rs 7,292 crore to Rs 35,381 crore, while net NPAs reduced by Rs 699 crore to Rs 3,433 crore.

Profitability and Capital Adequacy

Profitability indicators also strengthened during the quarter. Return on Assets (RoA) improved by 67 basis points year-on-year to 1.04 per cent, while the global net interest margin (NIM) edged up to 2.50 per cent from 2.47 per cent in the previous quarter. The bank's capital adequacy ratio (CRAR) rose to 18.13 per cent as of June-end from 17.50 per cent a year ago, providing an additional capital buffer for future growth.

Liability and Productivity Metrics

On the liability side, CASA deposits grew 7.8 per cent year-on-year to Rs 6.13 lakh crore, with the CASA ratio standing at 36.7 per cent. Savings deposits increased 7.2 per cent, while current deposits registered a stronger 12.3 per cent growth. Fee-based income rose 19.6 per cent sequentially to Rs 2,339 crore, while business productivity also improved, with business per employee increasing to Rs 29.71 crore and business per branch rising to Rs 278.28 crore.

(ANI)