Its net interest income (NII) during the second quarter rose 20% YoY to Rs 9,923 crore. It was Rs 8,271 crore in the year-ago period.
Operating profit (before provisions and contingencies) jumped 12% to Rs 6,216 crore in the reporting period against Rs 5,567 crore in the last year period.
The lender’s asset quality improved in the July-September period with gross non-performing assets (NPAs) reducing to 6.96% and net NPAs declining to 1.47%.
Following the Q2FY24 results, domestic brokerage Motilal Oswal said, “PNB reported a steady quarter as lower-than-expected provisions drove earnings, while asset quality continued to demonstrate a sharp improvement. NII growth was healthy QoQ supported by steady margins and healthy growth in RAM segments. Asset quality continued to improve, aided by lower slippages and healthy recoveries, while PCR improved further to 80%.”
Motilal reiterated its Neutral rating on the stock with a target of Rs 75.
At 12.28 p.m., the stock was trading 4.4% higher at Rs 72.9 on BSE. Over the past 12 months, the stock has also surged nearly 70%, while it has declined 10% in the past month.The bank’s deposits rose 10% YoY to Rs 13.09 lakh crore in the reporting quarter, while advances increased 15% YoY to Rs 8.9 lakh crore.
Segment-wise, revenue from treasury operations jumped 18% to Rs 8,071 crore, while that from corporate and wholesale banking 38% to Rs 12,426 crore in the second quarter.
The capital adequacy ratio of the bank improved to 15.09% at the end of the September quarter compared to 14.74% in the previous year period.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Download The Economic Times News App to get Daily Market Updates & Live Business News.