Punjab National Bank Announces Q3FY24 Financial Results

PNB MD&CEO Shri Atul Kumar Goel during PNB Q3FY24 Announcement

1) Punjab National Bank Announces Q3FY24 Financial Results :

Punjab National Bank today announced its Financial Results for the Quarter Ended 31st December 2023.

Highlights of the quarter is as follows: Net Profit increased to ₹ 2,223 Crore during Q3 FY’24, with YoY growth of 253.41%. Return on Assets (RoA) improved YoY by 41 bps to 0.58% in Q3 FY’24. Return on Equity (RoE) improved YoY by 860 bps to 12.45% in Q3 FY’24. Net Interest Income increased by 12.13 % YoY to ₹ 10,293 Crore in Q3 FY24. Operating Profit was at ₹ 6,331 Crore during Q3 FY’24 grew by 10.75 % on YoY basis. Credit Cost improved by 61 bps to 1.26% in Q3 FY’24 from 1.87 % in Q3 FY’23. GNPA ratio improved by 352 bps on YoY basis to 6.24 % as on December’23 from 9.76% as on December’22. NNPA ratio improved by 234 bps on YoY basis to 0.96 % as on December’23 from 3.30% as on December’22. Provision Coverage Ratio (including TWO) improved by 911 bps on YoY basis to 94.28 % as on December’23. Slippage ratio improved YoY by 136 bps to 0.81 % as on December’23. Global Business increased by 10.82% on YoY basis to ₹ 22,90,742 Crore as on December’23.

Global Deposits grew by 9.35% on YoY basis to ₹ 13,23,486 Crore as on December’23. Global Advances grew by 12.90% on YoY basis to ₹ 9,67,256 Crore as on December’23. Core Retail Advances grew YoY by 17.6% to ₹ 1,53,384 Crore as on December’23. MSME Advances grew by 15.4% on YoY basis to ₹ 1,43,983 Crore in December’23 from ₹ 1,24,728 Crore in December’22. Agriculture Advances (PS) grew by 17.4% on YoY basis to ₹ 1,16,902 Crore in December’23 from ₹ 99,590 Crore in December’22. RAM share improved by 113 bps on YoY basis to 55.07% as on December’23. Bank has achieved all the mandated targets under Priority Sector Advances. CRISIL and ICRA have upgraded PNB’s Bonds Ratings to AA+/Stable from AA/Positive for Tier I Bonds and AAA/Stable from AA+/Positive for Tier II Bonds. PNB crossed Market Cap of Rs. 1 Lakh Crore in December 2023

As for the Business performance in key parameters, Savings deposits increased to ₹ 4,78,880 Crore as on December’23 from ₹ 4,51,945 Crore as on December’22 registering a growth of 6.0% on YoY basis. Current deposits increased to ₹ 68,636 Crore as on December’23 from ₹ 64,589 Crore as on December’22 registering a growth of 6.3% on YoY basis. CASA Deposit increased to ₹ 5,47,516 Crore as on December’23 from ₹ 5,16,534 Crore as on December’22 registering a growth of 6.0% on YoY basis. CASA Share stands at 42.47% as on December’23. Total Retail increased by 19.0% YoY basis to ₹ 2,14,215 Crore in December’23 from ₹ 1,79,984 Crore in December’22. Within Core Retail Credit, Housing Loan increased by 15.1% on YoY basis to ₹ 90,579 Crore. Vehicle loan increased by 26.2% on YoY basis to ₹ 19,440 Crore. Personal Loan increased by 30.9% on YoY basis to ₹ 20,696 Crore. Agriculture Advances grew by 11.5% on YoY basis to ₹ 1,54,129 Crore in December’23 from ₹ 1,38,201 Crore in December’22.

In terms of profitability, Net Profit for Q3 FY’24 was at ₹ 2,223 Crore and ₹ 5,234 Crore for 9M FY’24 increased by 253.4% and 288.0%, respectively on YoY basis. Operating Profit for Q3 FY’24 was at ₹ 6,331 Crore and ₹ 18,515 Crore for 9M FY’24 increased by 10.8% and 11.1%, respectively on YoY basis. Net Interest Income for Q3 FY’24 was at ₹ 10,293 Crore and ₹ 29,720 Crore for 9M FY’24 increased by 12.1% and 18.9%, respectively on YoY basis. Total Income of the Bank for Q3 FY’24 was at ₹ 29,962 Crore and ₹ 87,924 Crore for 9M FY’24 recording growth of 16.5% and 25.6%, respectively on YoY basis. Total Interest Income of the Bank for Q3 FY’24 was at ₹ 27,288 Crore and ₹ 78,788 Crore for 9M FY’24 recording growth of 21.9% and 28.5%, respectively on YoY basis. Operating Expenses declined from ₹ 6,801 Crore as on Q3 FY’23 to ₹ 6,636 Crore as on Q3 FY’24.

In terms of Efficiency/Productivity  Ratio, Global Yield on Advances improved YoY by 122 bps to 8.45% in Q3 FY’24 and 133 bps to 8.22% in 9M FY’24 as compared to 7.23% in Q3 FY’23 and 6.89 % in 9M FY’23 respectively. Global Cost of Deposits increased YoY by 81 bps to 4.96 % in Q3 FY’24 and 90 bps to 4.85 % for 9M FY’24. Global Yield on Investment improved YoY by 18 bps to 6.76 % in Q3 FY’24 and 30 bps to 6.78 % for 9M FY’24. Business per employee improved to ₹ 23.08 Crore in December’23 from ₹ 20.55 Crore in December 22. Business per branch improved to ₹ 220.51 Crore in December’23 from ₹ 200.74 Crore in December’22. Net profit per employee improved to ₹ 9.16 lakhs in Q3 FY’24 from ₹ 2.54 lakhs in Q3 FY’23. Net profit per branch improved to ₹ 87.47 lakhs in Q3 FY’24 from ₹ 24.83 lakhs in Q3 FY’23.

On Asset Quality, Gross Non-Performing Assets (GNPA) were at ₹ 60,371 Crore as on December’23 as against ₹ 83,584 Crore as on December’22 declined by ₹ 23,213 Crore on YoY basis. Net Non-Performing Assets (NNPA) were at ₹ 8,816 Crore as on December’23 as against ₹ 26,363 Crore as on December’22 declined by ₹ 17,547 crore on YoY basis. Provision Coverage Ratio (PCR) Excluding TWO improved by 1694 bps YoY to 85.40 % in December’23 from 68.46 % in December’22.

CRAR was at 14.63% as on December’23. Tier-I is at 11.73% (CET-1 was at 9.86%, AT1 was at 1.87%) and Tier-II is at 2.90% as on December’23. Risk Weighted Assets were at ₹ 7,37,201 Crore as on December’23.

Bank has achieved all mandated target under Priority Sector such as Priority Sector Advances exceeded the National Goal of 40% and was at 43.45% of ANBC. Agriculture advances exceeded the National Goal of 18% and was at 19.89% of ANBC. Credit to Small & Marginal Farmers exceeded the National Goal of 10% and was at 11.03% of ANBC. Credit to Weaker Sections exceeded the National Goal of 12% and was at 14.54% of ANBC. Credit to Micro Enterprises exceeded the National Goal of 7.50% and was at 9.07% of ANBC.

PMJDY account increased to 491 Lakhs as on December’23 from 450 Lakhs in December’22. Enrollment under PMJJBY, PMSBY & APY in December 2023 are as under:

(No. in Lacs)

The Number of Digital Transactions at PNB increased to 461 Lakhs during 9M FY’24 from 292 lakhs during 9M FY’23 registering a growth of 58% on YoY basis. Internet Banking Services (IBS) users increased to 414 Lakhs as on December’23 recorded 9% YoY growth as against 381 Lakh as on December’22. Total Digital Loan Disbursed during the quarter improved to ₹ 2,312 Crore as on December’23 from ₹ 1,530 Crore as on September’23 registering a growth of ₹ 782 Crore on QoQ basis. Bank has launched PNB rupee Wallet App – Central Bank Digital Currency mobile app for customers. Bank has initiated online Locker Agreement for customers through tie up with NeSL. Facility for application of PMJJBY & PMSBY using Jan Suraksha API through PNB. One/Retail IBS has been started by the Bank.

As on 31st December’ 2023, the Bank has 10,108 number of Domestic branches. Rural: 3,911 (39%), Semi-Urban: 2,472 (24%), Urban: 2,001 (20%) & Metro: 1,724 (17%), 2 International Branches, 12,455 number of ATMs and 29,768 BCs.

The Bank also won awards in last quarter, notable ones being the IBSi Global Fintech Innovation Awards under 2 categories – Best Digital Channel/Platform Implementation: Best Adopted Tools & Practices for the PNB ONE-Super App Initiative and Best Transaction Banking Implementation. PNB also received Commendation Certificate of SCOPE Meritorious Award in the category of Innovative Practices in Women Empowerment for the year 2016-17. The Bank secured Third Rank under EASE Reform Index for Q2FY’24 – Ranked No1 under 2 themes: “Digital and analytics -driven business improvement” & “Tech and data enabled capability building” and Ranked No 3 under theme: “Developing people and enhancing HR operations”. PNB was also recognized for Excellence in Customer Service at Index of Service Excellence of India Event 2023 by Jagdish Sheth School of Management. The Bank also won the 23rd Greentech Environment Award 2023” for outstanding achievements in “Environmental Excellence” category and achieved Second Position in the category of Public Sector Banks with Highest Pledge Finance by Warehousing Development and Regulatory Authority.Ends

Union Bank of India Q3FY24 Financial Results Announcement Press Meet – 20/1/24

2) Union Bank of India Announces Q3FY24 Financial Results:

–The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter ended December 31, 2023.

Key Summary of Results

Network:

• 8,479 Branches including foreign branches
• 9,889 ATMs
• 18,987 BC points
• 135 MLPs (MSME Loan Points)
• 159 RLPs (Retail Loan Points)
• 43 ALPs (Agriculture Loan Points)
• 105 MSME First Branches
• 1,685 Gold Loan Points
• 19 LCBs & 40 MCBs
• 9 SAMBs & 29 ARBs

Financial Inclusion schemes:

Financial Inclusion schemes launched by GOI with an aim to eliminate barriers and provide economically priced financial services to the less accessible sections of the society through government-backed schemes like PMJJBY, PMSBY, PMJDY and APY.

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):

This is a Government- backed insurance scheme; where 1.98 lakhs new enrollments were done by the Bank for the quarter ended December 31, 2023.

• Pradhan Mantri Suraksha Bima Yojana (PMSBY):

This is Government- backed accidental insurance scheme; where 8.87 lakhs new enrollments were done by the Bank for the quarter ended December 31, 2023.

• Pradhan Mantri Jan Dhan Yojana (PMJDY):

Our bank is instrumental in opening 2.88 Crores accounts under PMJDY Scheme with balance of Rs. 9,604 Crores as on 31.12.2023. The corresponding figure was 2.86 Crores account with balance of Rs. 8,162 Crores as on 31.12.2022.

• Atal Pension Yojana (APY):

APY is a pension scheme, primarily targeted at the individuals working in unorganized sector, 2.09 lakh new enrollments were done by Bank for the quarter ended                December 31, 2023.

• Union Nari Shakti Scheme for Women Entrepreneurs:

   Sanctioned 18,017 Applications for Rs.2,011 crores during 9M FY24

• Credit facility towards Green initiatives: –

• Renewable Energy Sector: –Sanctioned Rs. 25,256 crores as on 31.12.2023 

• Union Green Miles: –Sanctioned amount Rs. 398 crores as on 31.12.2023.Ends

CANARA BANK Logo

3) CANARA BANK Announces Q3FY24 Financial Results:

Canara Bank reported Q3 FY24 standalone profit after tax at Rs 36.6 billion (up 27% YoY, in line), driven by lower provisions. Net interest income grew 9.5% YoY (in line), while margins improved 3 bp QoQ to 3.03%.

Other income grew 8% YoY to Rs 43 billion (down 7% QoQ, 6% miss). Opex grew 23% YoY to Rs 69.1 billion (17% QoQ growth, 8% beat). Pre-provision operating profit, thus, declined 2% YoY (7% miss). The cost/income ratio rose to 50.4% due to wage revisions at 17%.

On the business front, the loan book grew 13% YoY (3.2% QoQ), driven by healthy traction in retail and corporate loans. Canara Bank’s deposits grew 8.5% YoY (2.5% QoQ) to Rs 12.6 trillion, led by 14% YoY growth in term deposits. The current account and savings account ratio, thus, moderated 50 bp QoQ to 31.7%.

Asset quality ratios improved significantly, with credit costs falling below 1%. Fresh slippages stood at Rs 26.97 billion versus Rs 29.87 billion in Q2 FY24. Return on asset/return on equity stood at 1.01%/21.95%.

We broadly maintain our earnings per share estimates and expect Canara Bank to deliver FY25E RoA/RoE of 1.1%/19.5%. Reiterate ‘Buy’ with a target price of Rs 570.

Canara Bank’s third-quarter profit rose, beating analysts’ estimates. The public sector bank’s standalone net profit jumped 26.8% year-on-year to Rs 3,656.1 crore in the quarter ended December 2023, according to an exchange filing on Wednesday. Analysts polled by Bloomberg estimated a net profit of Rs 3,451.5 crore.

STANDALONE HIGHLIGHTS: Net interest income up 10% at Rs 9,417 crore (YoY). Net profit up 26.8% at Rs 3,656.1 crore (YoY) (Bloomberg estimate: Rs 3,451.5 crore). Gross NPA at 4.39% vs 4.76% (QoQ). Net NPA at 1.32% vs 1.41% (QoQ) Net interest income, or core income, of the bank rose 10% from last year to Rs 9,417 crore in the quarter. Other income rose 7.7% year-on-year to Rs 4,295.10 crore.
Net interest income, or core income, of the bank rose 10% from last year to Rs 9,417 crore in the quarter. Other income rose 7.7% year-on-year to Rs 4,295.10 crore. Other income was down quarter-on-quarter due to a dip in treasury income, K Satyanarayana Raju, managing director and chief executive officer of Canara Bank, told reporters in a press conference. “We are struggling in treasury income Asset quality for the lender improved, with the gross non-performing asset ratio falling 37 basis points quarter-on-quarter to 4.39%. The net NPA ratio, too, improved 9 basis points to 1.32%, as compared with 1.41% in the previous quarter. The NPAs from personal loans stood at about 1.2% and the bank’s exposure stays limited, according to Raju.
“The share of clean personal loans is about Rs 9,000 crore,” he said. The bank’s operating expenses rose 22.5% year-on-year to Rs 6,906 crore. Operating expenditure rose on provisions against the bipartite pact between IBA and employees on wage revision, the CEO said. A shortfall has been provided for it in Q3 and even the cost-to-income ratio stood at 50.37% due to provisions, he said. The net interest margin stayed flat at 3.02% quarter-on-quarter. Despite a pressure on deposits, the bank has been able to maintain NIM above 3%, Raju said. “We have been able to maintain a healthy portfolio on account of advances and healthy NPA,” he said. In the quarter ended December, the bank’s slippages stood at Rs 2,697 crore, according to Raju. Of this, Rs 1,000 crore were in agriculture.
The lender now expects Q4 slippages at Rs 2,800 crore, according to the CEO. “Rs 3,500 crore worth accounts expected under recoveries and upgradation in Q4.” Provisions for NPA for the quarter rose 9.7% from a year ago to Rs 2,106.9 crore. The provision coverage ratio stood at 89.01% for the quarter ended December. Credit costs for the bank stood at 0.97%, falling 5 basis points quarter-on-quarter from the previous 1.02%. The bank’s capital adequacy ratio stood at 15.78%, as of December 2023. Of this, the CET-1 ratio was 11.28%. The lender took a 52 bps hit on capital, due to Reserve Bank of India’s move of increasing credit risk weights, according to Raju. “A reduction is reflecting at 42 bps due to internal accruals in the current quarter; we have improved 10 bps,” he said.

The lender’s domestic gross advances increased 12.56% year-on-year to Rs 9,01,465 crore in the quarter ended December. Of this, retail advances stood at Rs 1,53,640 crore, up 12.14% year-on-year. However, agriculture and allied sectors saw the maximum growth of 19% year-on-year to Rs 2,42,470 crore. The CASA ratio for the lender stood at 31.65% for the quarter. It continues to be a concern due to high interest rate regime, according to Raju. “Our business is growing at 10% but CASA only at 5.5%; we hope to touch the 8% deposit growth soon,” he told reporters over a press call. The domestic deposits grew 8.07% year-on-year to Rs 11,66,848 crore. The lender was cautious in raising term deposit rates and only does it when it gets competitive pricing, Raju said. “Our retail deposits are growing fast and we will focus more on RAM, and closely monitor yields, cost of funds and interest burden,” he said. Ends

Shri Ajay Kumar Srivastava, CMD, IOB

4) Indian Overseas Bank – Announces Q3FY24 Financial Results: