Punjab National Bank (PNB) Q4FY25 Result Analysis

Punjab National Bank (PNB) is a state-owned commercial bank located in New Delhi. PNB is one of the leading commercial banks in India. They offer banking products, and also operate credit card and debit card business, bullion business, life and non-life insurance business, and gold coins and asset management business. They are recognized as the bank offering highest levels of customer satisfaction in Delhi and Chennai.

Result Analysis:   Punjab National Bank (PNB)  (CMP: Rs. 94.6)

Result Update: Q4FY25

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Financial Performance:

Shareholding Pattern:

Particulars (In %)	Q4FY25	Q4FY24
Promoters Group	70.08	73.15
FIIs	5.93	5.06
DIIs	14.67	12.37
Public and Other	9.32	9.43

Management Commentary:

• PNB expects operating profit growth to moderate to 8–9% in FY26 (down from 10–12% in FY25), while credit and deposit growth are projected to remain steady at 11–12% and 9–10%, respectively.
• The bank anticipates credit costs to rise slightly to below 0.5% in FY26, compared to the revised estimate of 0.25–0.30% for FY25.
• PNB’s board has approved raising up to ₹8,000 crore in FY26 through Basel III-compliant bonds, split equally between Additional Tier-I bonds (₹4,000 crore) and Tier-II bonds (₹4,000 crore), in one or more tranches.
• It has announced of Rs 2.90 per share dividend.

Outlook:

PNB has delivered a strong Q4FY25 performance with significant YoY growth in PAT (51.7%) and improvement in asset quality, as GNPA and NNPA declined notably. While net interest income rose YoY, margin pressures are evident with declining NIM. Deposit and advance growth remained healthy, and the bank maintains robust capital adequacy. The outlook for FY26 is moderate, with expected operating profit growth of 8–9%, stable credit and deposit growth, and slightly rising credit costs. The board’s approval to raise ₹8,000 crore via Basel III bonds. The Bank reported an EPS of ₹14.77 in FY25, and the stock is currently trading at a P/E of 6.4x and P/B of 0.92x.

Standalone Results:

Particulars (In Rs. Cr.)	Q4FY25	Q4FY24	Q3FY25	YoY%	QoQ%	FY25	FY24	YoY%
Interest Earned	31989.46	28113.43	31339.83	13.8	2.1	121760.73	106901.62	13.9
Other Income	4715.89	4247.61	3411.87	11	38.2	16309.37	13383.54	21.9
Total Income	36705.35	32361.04	34751.7	13.4	5.6	138070.09	120285.16	14.8
Operating Expenses	29929.7	25945.36	28131.15	15.4	6.4	111239.43	95354.35	16.7
Operating Profit Before Prov. & Cont.	6775.65	6415.68	6620.55	5.6	2.3	26830.67	24930.81	7.6
Provisions & Contingencies	359.67	1588.05	-285.4	-77.4	-226.0	1674.6	11736.6	-85.7
EBT	6415.98	4827.63	6905.95	32.9	-7.1	25156.07	13194.21	90.7
Provision for Taxes	1848.98	1817.36	2397.74	1.7	-22.9	8525.87	4949.59	72.3
Net Profit	4567	3010.27	4508.21	51.7	1.3	16630.2	8244.62	101.7

Segmental Revenue:

Particulars (In Rs. Cr.)	Q4FY25	Q4FY24	Q3FY25	YoY%	QoQ%	FY25	FY24	YoY%
Treasury Operations	10209.32	8688	9601.78	17.5	6.3	38594.12	31591.96	22.2
Corporate/Wholesale Banking	15478.89	13852.21	14757.26	11.7	4.9	58222.41	51613.87	12.8
Retail Banking	9811.81	9075.02	9447.76	8.1	3.9	37964.16	34668.13	9.5
a) Digital Banking	0.1	0.06	0.09	66.7	11.1	0.33	0.13	153.8
b) Other Retail Banking	9811.71	9074.96	9447.67	8.1	3.9	37963.83	34668	9.5
Other Banking Operations	1205.33	745.81	944.9	61.6	27.6	3289.41	2411.2	36.4

Source: Company website, EWL Research

 

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