PNB Q1 Results: Bank declares earnings today, net profit likely to jump to ₹1,850 crore

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PNB Q1 Results Preview: Punjab National Bank (PNB), the state-run lender, will announce its earnings for the quarter ended June 2023 on Wednesday, July 26. PNB Q1 results are expected to remain modest, in line with the performance of the overall PSU banks. Earnings growth for all PSU lenders is likely to remain robust in Q1FY24, aided by controlled credit costs, though margins can show a downside bias on rising funding costs.

Asset quality improvement is likely to continue, while healthy PCR and a sharp decline in SMA/stressed asset pool will keep credit costs in check. For Punjab National Bank, analysts expected the lender to report net profit of around ₹1,850 crore in the first quarter of FY24, registering a sharp growth from ₹308.4 crore in the corresponding quarter of last fiscal. Net interest income (NII), which is the difference between interest earned and interest expended, is likely to rise nearly 26% to ₹9,500 crore from ₹7,542.8 crore, YoY, as per average analysts’ estimates.

Also Read: Q1 results today: PNB, Tech Mahindra, Axis Bank, Bajaj Finance to Dr Reddy’s — 65 companies to declare Q1 results 2023 The bank’s operating profit is expected to see a growth of 18.8% YoY to ₹6,390 crore in Q1FY24. “Expect loan growth to remain modest. Rise in opex will be monitored.

Margins are likely to moderate slightly," brokerage firm Motilal Oswal Financial Services said. Asset quality is likely to witness an improvement. However, the pace of reduction in Net Non-Performing Assets (NPA) and RoA recovery remains the key monitorable.

PNB may see deposit growth of 14% and loan growth of 13.7% in the April-June 2023 quarter. Punjab National Bank has consistently been reporting robust earnings since many quarters. Its reported