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PNB Records Remarkable 160% Surge in Net Profit, Sustains Profitability Momentum, Reaching ₹3010 Crore in Q4 FY24
Punjab National Bank (PNB) reports a substantial increase in net profit for Q4 FY24, demonstrating continued growth and stability despite falling short of market expectations.

Author: Abhivad
Published: May 15, 2024
The financial results published by the Punjab National Bank (PNB) on 9 May, for the fourth quarter (Q4) and the financial year 2023-24 (FY24), showcases a remarkable surge in net profit and significant improvement in several other indices. Headquartered in New Delhi and established in 1894, PNB stands as the second-largest Public Sector Bank (PSB) in India in terms of business volumes.
Net Profit Surges by 160%
PNB has declared a net profit of ₹3,010.27 crore for Q4 FY24, marking a notable Year-on-Year (YoY) increase of nearly 160% compared to ₹1,158.61 crore in Q4 FY23. On a Quarter-on-Quarter (QoQ) basis, the bank's net profit rose by approximately 35%, standing at ₹2,222.81 crore in Q3 FY24. However, PNB fell short of market anticipations, with expectations pegged at ₹3,300 crore for Q4 FY24.
(Image Courtesy: From Financial Results published in official website of PNB)
Key Takeaways from PNB's Q4 FY24 Results
Deposits:
- Savings Deposits witnessed a Year-on-Year (Y-o-Y) growth of 3.5%, reaching ₹4,80,298 Crore.
- Current Deposits surged by ₹3,565 Crore to ₹72,201 Crore on a QoQ basis.
- CASA Deposits rose to ₹5,52,499 Crore, reflecting a Y-o-Y growth of 2.7%.
- Retail Term Deposit (below 2 Crores) recorded a robust Y-o-Y growth of 9.5%, reaching ₹5,62,705 Crore in March 2024.
Advances:
- Total Retail credit increased by 12.6% to ₹2,22,574 Crore in March 2024.
- Core Retail credit witnessed a Y-o-Y growth of 15.2%, with notable increases in Housing Loan (14.5%), Vehicle Loan (25.6%), and Personal Loan (14.4%).
- Agriculture Advances grew by 11.3% Y-o-Y to ₹1,58,188 Crore, while MSME Advances increased by 7.0% to ₹1,39,288 Crore in March 2024.
Asset Quality:
- Gross Non-Performing Assets (GNPA) decreased to ₹56,343 Crore in March 2024 from ₹77,328 Crore in March 2023.
- Net Non-Performing Assets (NNPA) declined to ₹6,799 Crore from March 2023 to March 2024.
- Net Slippages declined from ₹14,198 crore in FY23 to ₹5,552 Crore in FY24.
Profitability:
- Total Income for Q4 FY24 stood at ₹32,361 Crore, recording a Y-o-Y growth of 18.7%.
- Total Interest Income for Q4 FY24 was ₹28,113 Crore, reflecting a Y-o-Y growth of 17.9%.
- Fee-based income grew by 8.4% Y-o-Y to ₹6,084 Crore in FY24.
Productivity Ratio:
- Domestic Net Interest Margin was at 3.25% in Q4 FY24.
- Global Yield on Advances improved Y-o-Y by 50 bps to 8.44% in Q4 FY24 and by 112 bps to 8.28% in FY24.
- Business per employee improved to ₹23.84 Crore in March 2024.
- Business per branch improved to ₹225.25 Crore in March 2024.
- Net profit per employee improved to ₹8.61 lakhs in FY24, while net profit per branch improved to ₹81.33 lakhs in FY24.
Role of PSBs and Welfare Initiatives
In addition to the surge in profit, PSBs including the Punjab National Bank also play a pivotal role in implementing government welfare schemes and policy priorities. Commenting on PNB's performance, Krishnakumar, General Secretary of the All India PNB Officers’ Federation, emphasised the bank's significant achievements in priority sector lending. “First example is priority sector lending, where the bank has achieved all the mandated targets in the financial year 2023-24. PNB has achieved 40.57% of Adjusted Net Bank Credit (ANBC) against the target of 40% as directed by the government. In rural areas where poverty is higher and the majority of the people are dependent on agriculture, the bank provides agri-loans at lower interest rates. The total lending in agri-sector is 18.27% of ANBC, whereas the government directive is to achieve 18%,” said Krishnakumar. This illustrates PNB's commitment to supporting rural economies and promoting agricultural development.
Additionally, PNB met its targets for loans to small and marginal farmers and micro-enterprises, with 10.09% and 8.16% of ANBC respectively. The bank also exceeded the government mandate by providing 13.57% of ANBC to weaker sections, surpassing the target of 12%. PNB's investment in initiatives like Rural Self Employment Training Institutes, Rural Development Institutes, Financial Literacy Centres, and Farmers’ Training Centres further underscores its dedication to rural development. The bank has excelled in implementing Pradhan Mantri Yojanas such as Jeevan Jyoti Beema Yojana, Jan Dhan Yojana, and Atal Pension Yojana. Krishnakumar noted, “In this way, PSBs are integrated into the grassroots of this country. This signifies the indispensability of PSBs in the Indian economy. Therefore, public sector banking must be further strengthened for inclusive development and progress.”
Despite operational challenges and past setbacks, PNB's Q4 FY24 results underscore its resilience and continued growth trajectory. The bank's ability to enhance profitability, manage assets effectively, and improve productivity metrics reflects its commitment to stability and progress in the financial landscape.