Mumbai: Punjab National Bank (PNB) has announced its Q4 results for FY2025. The bank’s net profit rose from Rs 3,010 crore to Rs 4,567 crore, marking a 52 per cent year-on-year (YoY) growth.

Key Reasons Behind Profit Growth

Improvement in NPA: Bad loans have reduced significantly.

Drop in Provisioning Cost: Provisions fell from Rs 1,588 crore to Rs 360 crore.

Net NPA is now below 1 per cent, showing a healthy asset quality.

A senior bank official said the bank’s focus is now on quality along with growth, which has led to strong improvement in profits.

Interest Income and Margins Stable

Net Interest Income (NII) saw a slight increase, while operating margins remained steady. If this trend continues, PNB could be in a much stronger position in the future.

Strong Business Growth

Global Advances: Rs 11.16 lakh crore (14 per cent YoY growth)

Global Deposits: Rs 15.66 lakh crore (14.4 per cent YoY growth)

Global Business: Rs 26.83 lakh crore (14 per cent YoY growth)

RAM Advances (Retail, Agri, MSME): Rs 6.02 lakh crore (15.9 per cent YoY growth)

Why NPA Reduction Matters

- Gross NPA dropped from Rs 56,343 crore in March 2024 to Rs 44,082 crore.

- Net NPA declined from Rs 6,799 crore to Rs 4,291 crore.

- Provision Coverage Ratio (PCR) is now at 96.82 per cent, showing the bank has kept enough reserves to cover bad loans.

Strong Push in Digital Banking

- 94 per cent of total transactions are now digital.

- UPI and WhatsApp banking usage has risen sharply.

- AI, analytics, and digital loan services have expanded.

- Core retail advances (home, vehicle, education loans) grew by 18.2 per cent.

- PNB Results 2025, Banking News, Profit Growth