The net profit for the period stood at Rs 3,252 crore versus a PAT of Rs 1,255 crore in the corresponding quarter of the previous financial year. The global and domestic net interest margins of the bank stand at nearly 3%.
Total Income of the bank was booked at Rs 32,166 crore for Q1 FY25 from Rs 28,579 crore for Q1 FY24, recording a growth of 12.5%. The GNPA ratio for the quarter has improved by 275 bps on YoY basis to 4.98% from 7.73% in June 2023, while its NNPA ratio was up by 138 bps YoY to 0.60%.
Among other highlights, the savings deposits registered a 4.4% YoY growth, increasing to Rs 4,84,377 crore and its current deposits and CASA Deposits stood at Rs 64,702 crore and Rs 5.49 lakh crore respectively in the June quarter.
The bank, via a filing to the exchanges, also informed that its global business grew by 10.03% YoY while its global deposits registered a growth of 8.50% year-on-year.
Here is what brokerages say on the first quarter results of the bank:
Motilal Oswal: Neutral| Target price: Rs 135
PNB reported a healthy quarter characterized by a sharp decline in provisions. NIIbroadly stood in line, while NIM contracted marginally in 1QFY25.Asset quality continues to witness a sharp improvement as recoveries and w-off continued to stay at higher levels. PCR thus improved further to 88%, while asset quality ratios also improved. The domestic brokerage firm raised its EPS estimates by 5.6%/0.8% for FY25/FY26, factoring in lower provisions, healthy NII, and steady margins.
Kotak Institutional Equities: Sell| Target price: Rs 110
PNB reported 160% YoY earnings growth, driven by 10% YoY growth in operating profit and 70% YoY decline in provisions. RoA was at 0.8% and RoE was at 12%. Asset quality is comfortable and the net NPL ratio touched 0.6%, which was at par with SBI. Slippage ratio was at 0.8% while the bad loan recoveries held up well and advances grew 12% YoY, led by retail and agri. NIM was broadly flat QoQ. Kotak Equities rates PNB with a sell rating due to relatively expensive valuations.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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