Punjab National Bank or PNB, an Indian commercial bank, announced financial results for the fourth-quarter, reporting a hike standalone net profit, backed by significant increased in net-interest income, despite reducing the prime lending rate twice during the quarter.
Standalone Results
The New Delhi-based bank posted fourth-quarter net profit of Rs.865.57 crore or Rs.27.45 per share, 59% higher than Rs.543.76 crore of Rs.17.25 per share in the fourth-quarter of 2008.
During the quarter, the bank's net interest income rose 26% to Rs.1,906.53 crore from Rs.1,517.28 crore for the same period last year. Non-interest income for the quarter grew 59% to Rs.855.57 crore from Rs.537.21 crore in the year-ago quarter.
Total income for the quarter increased 38% to Rs.6,098.14 crore from Rs.4,417.00 crore during the Q4FY08.
Operating profit before provisions and contingencies for the quarter increased 29% to Rs.1,588.16 crore from Rs.1,226.78 crore in the prior year quarter.
For the fiscal year, the bank's standalone net profit totaled Rs.3,090.88 crore, up 51% from Rs.2,048.76 crore in 2008.
For the year, the bank's net interest income rose 27% to Rs.7,030.86 crore from Rs.5,534.16 crore for the same period last year. Non-interest income for the quarter grew 46% to Rs.2,919.69 crore from Rs.1,997.56 crore in the year-ago quarter.
For the fiscal year, the total standalone income amounted to Rs.22,245.86 crore, up 37% from Rs.16,262.58 crore in 2008.
Consolidated Results
For the fiscal year, the bank reported consolidated net profit of Rs.3,197.03 crore, compared with Rs.2,203.09 crore a year-ago, representing a growth of 45%.
For the year, the bank's net interest income rose 26% to Rs.7,201.29 crore from Rs.5,701.60 crore in the preceding year. Non-interest income for the year grew 46% to Rs.2,912.08 crore from Rs.1,993.09 crore 2008.
For the fiscal year, the total consolidated income amounted to Rs.22,689.73 crore, up 36% from Rs.16,653.72 crore in the previous year.
On a consolidated basis, the total deposits at the end of March this year 2009 increased 26% to Rs.210,659 crore from Rs.166,917 crore as on March 31, 2008, while gross advances rose 30% to Rs.158,453 crore from Rs.121,571 crore as at the end of March 2008.
The capital adequacy of the bank as at the end of March 2009 as per Basel I was 12.59%, compared with 12.96% as on March 31, 2008.
As at the end of March 2009, the gross non-performance assets as a proportion of gross customer assets were 1.77%, down from 2.74% at the end of March 2008. while net non-performance assets as a proportion of net customer assets declined to 0.17% from 0.64% as on March 31, 2008.
The bank said its board has recommended a dividend of Rs.20 per equity share of Rs.10 each for the fiscal year 2009.
PNB said its board also decided to apply to Reserve Bank of India or RBI to set up a company to offer Factoring Services and to disinvest 26% of its stake in PNB Housing Finance Ltd. in favour of Dawnay Day with a provision to issue fresh capital at a later date to take the disinvestment up to 49%.
The bank has in place RBI's approval for opening a subsidiary in Canada, an offshore banking unit in Singapore and a branch at DIFC, Dubai. It has also finalized a joint venture bank in Bhutan with local partners. The bank also plans to upgrade its representative offices in Norway and Shanghai to branches.
At the BSE, PNB closed Wednesday's trading at Rs.677.25, down by Rs.14.55 or 2.10% on a volume of 3.16 shares. The stock hit an intraday high of Rs.708.00 and a low of Rs.667.00.
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