Punjab National Bank (BOM:532461) Q4 2025 Earnings Call Highlights: Record Profit Surge Amidst ...

GuruFocus News

Thu, May 8, 2025, 4:00 PM 3 min read

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.

• Punjab National Bank (BOM:532461) reported a important maturation successful planetary gross business, reaching 26.83 trillion with a yearly maturation complaint of 14%.

• The bank's nett net for the fiscal twelvemonth 2024-25 accrued by 101.7% compared to the erstwhile year, reaching 16,630 crores.

• Asset prime improved with gross NPA reducing from 5.73% to 3.95% and nett NPA improving from 0.73% to 0.40%.

• The slope achieved a precocious proviso sum ratio (PCR) of 96.8%, surpassing its guidance of much than 95%.

• Digital transactions accounted for 94% of the bank's full transactions, indicating beardown integer penetration and adoption.

• There was a notable summation successful slippages successful Q4, peculiarly successful the agriculture and MSME segments, which were supra mean levels.

• The bank's nett involvement income (NII) experienced a marginal dip successful Q4 owed to the contiguous interaction of argumentation complaint cuts.

• Deposit costs person risen, partially owed to peculiar deposit schemes, which whitethorn proceed to interaction margins until repricing occurs.

• The slope faces imaginable borderline unit owed to a precocious proportionality of loans linked to EBLR and T-bill, which are delicate to complaint cuts.

• Operating expenses showed an increase, with nary circumstantial one-off events identified, suggesting ongoing outgo pressures.

• Warning! GuruFocus has detected 2 Warning Signs with BOM:532461.

Q: The slippage complaint seems higher than erstwhile quarters. Is this the caller normal, oregon were determination immoderate one-off factors? A: (MD & CEO) The slippage complaint for FY25 was 0.73%, wrong our guidance of beneath 1%. The higher slippages successful Q4 were chiefly successful the agriculture and MSME segments, peculiarly successful loans beneath INR 10 lakh. We've already recovered INR 288 crore successful April from these slippages and expect aboriginal quarterly slippages to beryllium astir INR 1,500 to 1,700 crore.

Q: How did the ample indebtedness transportation to NARCL impact your books? A: (MD & CEO) We recovered INR 458 crore done NARCL successful Q4, with a full betterment of INR 863 crore for FY25. This betterment is reflected arsenic a reversal of provisions, contributing to our method write-off recovery.

Q: With rising deposit costs, however bash you program to negociate margins? A: (MD & CEO) The summation successful deposit costs was partially owed to a peculiar deposit scheme, which has present been withdrawn. We expect deposit costs to stabilize and perchance alteration from Q3 onwards, arsenic we revisit our deposit rates. We purpose to support margins betwixt 2.8% and 2.9% successful the archetypal fractional of FY26, improving to 2.9% to 3% later.