PSU Banks Q1 results update: PNB, SBI lead as lenders on a strong footing, double the bottomline

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₹34,418 crore as compared to a net profit of ₹15,307 crore recorded in the April-June quarter of FY23. The net interest margin of PSU banks during Q1FY24 grew at an average of more than 3%, lifted by the high interest rate regime. “PSU banks are witnessing late benefits of credit growth and improving asset quality.

The balance sheets of state-run lenders have improved and this improvement is expected to continue going for the next 2-3 quarters," said Vinod Nair, Head of Research at Geojit Financial Services. During the first quarter of FY24, four state-run lenders recorded a profit of more than 100%. The highest profit growth was registered by Punjab National Bank (PNB).

The lender reported a net profit of ₹1,255.41 crore in Q1FY24 as against ₹308.44 crore in the same quarter of the previous year, witnessing a growth of 307%. PNB’s net interest margin also improved to 3.08% from 2.79%, with a net interest income (NII) growth of 26%, YoY. It was followed by the largest lender in the country, State Bank of India (SBI), which posted a net profit growth of 178.25% at ₹16,884.29 crore.

SBI’s NIMs increased to 3.47%, while its NII also rose 24.71% on-year. This was SBI's highest-ever quarterly profit and is about 50% of the total profit earned by PSBs. Read here: SBI Q1 results 2023: Net profit jumps 178% to ₹16,884 crore, NII rises 24.71% In FY23, cumulative profit of all PSU banks was ₹1.05 lakh crore and SBI contributed about 50% of it.

Bank of India’s bottomline during the quarter jumped 176.24% YoY to ₹1,551.07 crore. Its NII rose 45.22% YoY. Next in line was the Union Bank of India that reported a net profit growth of 107.67% to ₹3,326.44 crore from ₹1,558.46 crore, YoY.