Punjab National Bank (PNB) has announced a significant surge in its financial performance for the third quarter of fiscal year 2025. The bank reported a standalone net profit of ₹4,508 crore for the quarter ended December 31, 2024, marking a 103% increase compared to ₹2,223 crore in the same period last year.

The bank's net interest income (NII), a crucial indicator of profitability, also saw a healthy rise. NII grew by 7.2% year-on-year to ₹11,032 crore. This increase in NII reflects the bank's improved efficiency in managing its assets and liabilities. Furthermore, the total income of PNB jumped 16% to ₹34,751.7 crore, compared to ₹29,961.65 crore in the corresponding quarter of the previous fiscal year.

PNB has also demonstrated significant improvement in its asset quality. The bank's gross non-performing assets (GNPA) fell to ₹45,413.98 crore in Q3FY25, a substantial decrease from ₹60,371.38 crore in Q3FY24. The Gross NPA Ratio also declined to 4.09% from 6.24% year-on-year. Similarly, net NPAs decreased to ₹4,437.43 crore in Q3FY25. The NNPA ratio also fell to 0.41 percent. These figures indicate better management of loan assets and a reduction in the risk of defaults.

The bank's global business showed substantial growth, increasing by 15.25% year-on-year to ₹26,39,991 crore. Global deposits registered a growth of 15.58% to ₹ 15,29,699 crore, while global advances increased by 14.79% to ₹ 11,10,292 crore. The Current Account and Savings Account (CASA) deposits grew 2.7 per cent Y-o-Y to Rs 5. 62 trillion. As on December 31, savings deposits increased to Rs 4.92 trillion registering a Y-o-Y growth of 2.8 per cent and current deposits increased to Rs 70,018 crore, a 2 per cent increase.

The announcement of these robust Q3 results led to a positive market reaction, with PNB shares surging 5% to hit a day's high of ₹101.13 on the NSE. This surge reflects investor confidence in the bank's performance and future prospects.

Several factors contributed to PNB's strong performance in Q3FY25. Prudent asset management, increased operational efficiency, and a focus on growing the loan book have all played a crucial role. The bank's improved asset quality, as reflected in the reduced NPA levels, has also boosted profitability. PNB's positive Q3 results indicate that the bank is on a steady growth trajectory. The bank's focus on improving asset quality and increasing operational efficiency is expected to drive further growth in the coming quarters.