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Indian Bank and PNB Report Strong Q3 2023 Financial Performance
© Reuters.
Indian Bank and Punjab National Bank (PNB) have reported impressive financial results for the third quarter of 2023, with both banks experiencing significant growth in key metrics.
Indian Bank’s net profit surged by 62% year-on-year to ₹1,988 crore, driven by substantial growth in net interest income, operating profit, credit offtake, and non-interest income. The bank also reported a 25% reduction in provisions. SL Jain, the bank’s MD & CEO, attributed this growth to consistent improvements in key metrics.
Despite a fall in non-performing assets (NPAs), with gross NPA dropping from 7.30% to 4.97% and net NPA from 1.5% to 0.6%, fresh slippages rose to ₹1,976 crore. These were primarily from the agriculture sector and corporate segment. However, the bank’s domestic advances increased by 11%, driven by growth in retail, agriculture, MSME loans, and corporate loans which grew by 11%. These segments represented over 62% of the gross domestic loans.
While total cash recoveries were lower at ₹1,943 crore and the domestic CASA share slipped slightly, domestic deposits saw a 7% increase and total recoveries (cash and upgradation) were at ₹2,265 crore. The bank’s total business grew by 10% year-on-year to ₹11.33-lakh crore.
On the other hand, PNB’s Q2FY24 results showed a net profit surge of 327% to ₹1,756 crore due to higher interest income and improved credit quality. The net interest income increased by 20% to ₹9,923 crore while gross NPA fell to ₹65,563.12 crore and net NPA decreased to ₹13,114.12 crore. The Gross NPA as a proportion of gross advances dropped to 6.96%.
The bank’s global business and savings deposits grew by 11.26% to ₹22,51,631 crore and to ₹4,71,238 crore respectively, with current deposits at ₹67,038 crore. PNB achieved over ₹3,000 crore profitability in H1FY24 and is focusing on the Retail, agri, and MSME sectors.
Following the results, PNB shares recovered to ₹70.30 on BSE and settled at ₹69.81. CEO Goel expressed hope for maintaining profitability in the next quarters, indicating a positive outlook for the bank’s future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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