PNB Financial Results for the Quarter Ended 31st March 2022

The Punjab National Bank (PNB) has released its financial results for the Quarter Ended 31st March 2022.

Key Highlights

• The Board of Directors have recommended a dividend of Rs. 0.64 per equity share (32%) for the year ended March 31, 2022 subject to requisite approvals.
• Net profit for Q4 FY’22 was at ₹202 Crore Net Profit for FY’22 grew to ₹3457 Crore (YoY growth 71%) from ₹2022 Crore in FY’21.
• Operating Profit increased to ₹5265 Crore during Q4 FY’22, with YoY growth of 17.30 %.
• Global NIM improved by 7 bps to 2.76 % in Q4 FY’22 from 2.69 % in Q4 FY’21.
• Cost to Income Ratio improved by 690 bps to 46.02 % in Q4 FY’22 from 52.92 % in Q4 FY’21.
• GNPA ratio improved by 234 bps to 11.78 % in March’22 from 14.12 % in March’21.
• NNPA ratio improved by 93 bps to 4.80 % in March’22 from 5.73 % in March’21.
• PCR including TWO improved by 146 bps to 81.60 % in March’22 from 80.14 % in March’21.
• CRAR improved to 14.50 % in March’22 from 14.32 % in March’21.
• Retail Credit increased by 6.69 % on YoY basis to ₹130225 Crore as at the end of March’22.
• Agriculture advances grew by 9.79 % on YoY basis to ₹124286 Crore.
• Domestic CASA Share improved by 195 bps on Y-o-Y basis to 47.43 % in March’22 from 45.48% in March’21.

Business Performance in Key Parameters (as on 31.03.2022)

• Global Business increased by 4.64 % on YoY basis to ₹1931322 Crore as at the end of March’22 as against ₹1845739 Crore in March’21.
• Global Deposits grew by 3.61% on YoY basis to ₹1146218 Crore as at the end of March’22 as against ₹1106332 Crore in March’21.
• Global Advances grew by 6.18 % on YoY basis to ₹785104 Crore as at the end of March’22 as against ₹739407 Crore in March’21.
• In Retail Segment,
  • Housing loan increased by 3.6 % on YoY basis to ₹73805 Crore.
  • Vehicle loan increased by 23.4 % on YoY basis to ₹12615 Crore.
  • Personal loan grew by 14.1 % on YoY basis to ₹12193 Crore.

Priority Sector

• Priority Sector Advances stood at ₹283712 Crore, exceeding the National Goal of 40 % and was at 42.42 % of ANBC as at the end of March’22.
• Agriculture advances stood at ₹122708 Crore, exceeding the National Goal of 18 % and was at

18.35 % of ANBC as at the end of March’22.

• Credit to Small and Marginal farmers stood at ₹65979 Crore in March’22. National Goal achievement is 9.87 % of ANBC, exceeding the target of 9 %.
• Credit to Weaker Sections stood at ₹90002 Crore in March’22. National Goal achievement is

13.46 % of ANBC, exceeding the target of 11 %.

• Credit to Micro Enterprises stood at ₹53963 Crore as on March’22. The Bank has achieved National Goal at 8.07 % of ANBC as against the target of 7.5 %.

Profitability

• Total Income of the Bank for FY’22 was at ₹87200 Crore.

• Operating Income of the Bank for FY’22 was at ₹41014 Crore.

• Total Interest Income of the Bank for FY’22 was at ₹74880 Crore.

• Net Interest income grew by 5% in Q4FY22 to ₹7304 Crore from ₹6957 Crore.

• Total Expenditure of the Bank for FY’22 declined by 6 % to ₹66438 Crore.

• Operating Expenses declined by 11% for Q4FY’22.

• Total interest Paid registered decline of 4 % on QoQ basis to ₹11341 Crore in Q4 FY’22 from

₹11852 Crore in Q4 FY’21.

Efficiency Ratio

– Cost to income ratio for Q4 FY’22 improved by 690 bps to 46.02 % in Q4FY’22 from 52.92 % in Q4FY’21. – Global Cost of Deposits improved to 3.90 % in Q4 FY’22 from 4.22 % in Q4 FY’21. – Return on Assets improved to 0.26 % in FY’22 from 0.15 % in FY’21. – Yield on Advances at 6.64 % in Q4 FY’22. Yield on Investment at 6.41 % in Q4 FY’22. – Business per employee improved to ₹1941 lacs in March’22 from ₹1885 lacs in March’21. Asset Quality –  Gross Non-Performing Assets (GNPA) stood at ₹92448 Crore as on March’22 as against ₹104423 Crore as on March’21 declined by 11.47 %   –  Net Non-Performing Assets (NNPA) stood at ₹34909 Crore as on March’22 as against ₹38576 Crore in as on March’21 declined by 9.51 %.

Capital Adequacy
– CRAR improved to 14.50 % in March’22 from 14.32 % as at March’21. Tier-I is 11.73 % (CET-1 was at 10.56 %, AT1 was at 1.17 %) and Tier-II CRAR is 2.77 % as at March’22.