New Delhi, May 7, 2025: Punjab National Bank (PNB) has unveiled its audited financial results for FY 2024-25, sparking concerns among corporate investors. While the bank’s net profit doubled to ₹16,630 crore from ₹8,244 crore last year, persistent issues with non-performing assets (NPAs) and rising borrowings cast a shadow over this performance.
An operating profit of ₹26,830 crore was recorded, reflecting a 7.6% increase from ₹24,930 crore in the previous year. Total income stood at ₹1,38,07,010 lakh, with interest income contributing ₹1,21,76,073 lakh. Gross NPAs improved from 5.73% to 3.95%, and Net NPAs marginally declined from 0.73% to 0.40%. Earnings Per Share (EPS) rose significantly from ₹7.49 to ₹14.77, offering a positive note for investors.
Deposits grew by 14.3% to ₹1,56,66,2328 lakh, and advances increased by 15.3% to ₹1,07,74,7457 lakh compared to the prior year. However, borrowings surged to ₹83,77,671 lakh, pushing the debt-equity ratio from 0.68 to 0.86. The Capital Adequacy Ratio (CAR) improved from 15.97% to 17.01%, exceeding regulatory requirements.
Despite these gains, a default of ₹7,997 crore on loan facilities and elevated borrowing levels raise red flags. A dividend of ₹2.90 per share has been recommended, providing some relief to shareholders, but questions about financial stability persist.
Conclusion: PNB’s financial results showcase profit growth, but high borrowings and defaults signal underlying challenges. Corporate investors are advised to closely monitor the bank’s risk management strategies and future performance.
