PNB consolidated internet zooms 171.4% at ₹8,329 crore, board declares ₹1.5 dividend

Aided by an improved asset high quality and decrease credit score price, Punjab Nationwide Financial institution (PNB), the nation’s second largest public sector financial institution, on Thursday reported a 171.4 per cent enhance in consolidated internet revenue for 2023-24 at ₹8,329 crore (₹3,069 crore).

For the quarter ended March 31,2024, PNB’s consolidated internet revenue grew 78.11 % at ₹3,101 crore (₹1,741 crore). 

That is the primary time ever that financial institution’s internet revenue has crossed ₹3,000 crore mark in 1 / 4 and the newest quarterly backside line efficiency is the best within the final sixteen quarters, Atul Kumar Goel, Managing Director and CEO, mentioned .

The Board of Administrators have declared a dividend of ₹ 1.5 per share of ₹ 2 every as remaining dividend for 2023-24.

Goel mentioned that financial institution’s Board has given its nod to undertake capital elevating of ₹17,500 crore in 2024-25 together with a certified institutional placement of ₹7,500 crore. This additionally contains AT-1 capital of ₹7,000 crore and Tier-II bonds of ₹3,000 crore.

“We count on to finish the QIP by finish September. The bankers have already been appointed,” Goel mentioned. 

Requested in regards to the current RBI draft proposal on mission finance, Goel mentioned that PNB will submit its views to the Reserve Financial institution of India (RBI) on this situation. 

“RBI proposal is draft pointers. In my view, there isn’t any must change into panic. We’ll search clarification,” Goel mentioned. One of many clarification that PNB would search is whether or not a threshold mortgage restrict could possibly be launched past which solely the proposed norms could be put in force, Goel added.

For the present fiscal, PNB is eyeing deposit development of 9-10 per cent and credit score development of 11-12 per cent.

On asset high quality, Goel highlighted that PNB had in 2023-24 drastically introduced down the gross NPA ratio as a proportion of advances to five.73 per cent (from 6.82 per cent) and internet NPA ratio to 0.7 per cent (from 2.72 per cent). For present fiscal, PNB is aiming to deliver internet NPA ratio to lower than 0.5 per cent and gross NPA to lower than 5 per cent, he added.

On a consolidated foundation, complete earnings of the financial institution in 2023-24 stood at ₹1,22,394 crore (₹99,084 crore). For the fourth quarter ended March 31, 2024, complete earnings stood at ₹32,977 crore (₹28,132 crore).

In 2023-24, the overall restoration from NCLT for the financial institution stood at ₹3,224 crore, Goel mentioned.