Punjab National Bank (PNB), one of India’s prominent state-owned lenders, has reported a remarkable 145% increase in standalone net profit for the second quarter of the fiscal year 2025 (Q2 FY25). For the quarter ending in September, PNB’s net profit surged to Rs 4,303 crore, a significant jump from Rs 1,756 crore in the same period the previous year.
Growth in Interest Income and Expenditure
During Q2 FY25, PNB recorded an interest income of Rs 29,875 crore, marking a 13% year-over-year (YoY) increase compared to Rs 26,355 crore in Q2 FY24. This growth reflects the bank’s effective strategies to boost its revenue generation amid a competitive financial landscape. On the other hand, PNB’s interest expenses also rose, standing at Rs 19,358 crore—a substantial 18% increase from Rs 16,432 crore reported in the corresponding quarter last year.
Stock Performance Following Financial Results
PNB’s strong financial performance positively influenced its stock price, which surged by 7% on the National Stock Exchange (NSE). The stock reached an intraday high of Rs 101.95. At 2:00 pm, PNB shares were trading at Rs 101.28, reflecting investor confidence following the robust Q2 earnings report.
Improvement in Asset Quality: Decline in Gross and Net NPAs
The bank’s asset quality also showed notable improvement, with gross non-performing assets (NPAs) declining to Rs 47,582 crore in Q2 FY25 from Rs 51,263 crore in the April-June quarter (Q1 FY25) and Rs 65,563 crore in Q2 FY24. This drop brought the gross NPA percentage down to 4.48%, a reduction from 4.98% in Q1 FY25 and 6.96% in the same quarter last year.
Similarly, PNB’s net NPAs saw a decrease, falling to Rs 4,674 crore in Q2 FY25, compared to Rs 5,930 crore in Q1 FY25 and Rs 13,114 crore in Q2 FY24. In percentage terms, net NPAs were reported at 0.46% in Q2 FY25, down from 0.60% in the previous quarter and 1.47% in Q2 FY24.
Punjab National Bank (PNB) has delivered impressive financial results for the second quarter of FY25, marking a substantial 145% year-over-year (YoY) increase in its standalone net profit, which has reached Rs 4,303 crore. The results, announced during market hours, showed strong growth across income, expense, and asset quality metrics, surpassing market expectations.
Steady Growth in Interest and Total Income
For Q2 FY25, PNB’s interest income rose by 13% to Rs 29,875 crore, up from Rs 26,355 crore in the same quarter of the previous year. Total income also demonstrated robust growth, reaching Rs 34,000 crore—an increase from Rs 29,000 crore YoY. The consistent growth in income is attributed to the bank’s strategic approach to enhance its lending portfolio and capitalize on favorable interest rate conditions. According to the video by PNB Q2 Results 2025 YouTube, the quarterly and yearly increase in interest and total income highlights the bank’s successful efforts in revenue generation.
Increased Interest Expenditure Reflecting Operational Expansion
PNB’s interest expenses grew by 18% to Rs 19,358 crore in Q2 FY25, up from Rs 16,432 crore in Q2 FY24. This increase in expenditure mirrors the bank’s expansion and its ongoing investments in operational activities. The growth in both income and expenses shows PNB’s resilience and adaptation to rising market demands.
Reduced Provisions Reflecting Improved Risk Management
The bank also saw a significant reduction in provisions, which fell from Rs 3,400 crore in Q2 FY24 to Rs 2,288 crore in Q2 FY25. This reduction aligns with the bank’s efforts to improve its risk assessment frameworks and maintain a healthier loan portfolio. As highlighted in the YouTube video, the reduced provisioning emphasizes PNB’s focus on lowering its liabilities while enhancing profitability.
Asset Quality Enhancement: Decline in Gross and Net NPAs
PNB’s asset quality has significantly improved, as shown by a decrease in gross non-performing assets (NPAs) to Rs 47,582 crore, compared to Rs 65,563 crore in the corresponding quarter last year. Gross NPAs as a percentage declined to 4.48%, down from 6.96% YoY. Net NPAs also dropped to Rs 4,674 crore, equating to 0.46%, compared to 1.47% in Q2 FY24. The reduction in NPAs indicates PNB’s strengthened credit assessment and recovery mechanisms, which have helped the bank streamline its asset quality.
EPS Growth and Enhanced Market Confidence
The bank’s earnings per share (EPS) rose significantly, climbing from Rs 1.59 in Q2 FY24 to Rs 3.90 in Q2 FY25. This increase in EPS indicates an impressive return for shareholders and a sign of sustainable growth in PNB’s profit-making capacity. The market reacted positively to the results, with PNB’s stock price rising by 7% on the NSE, peaking at Rs 101.95 during intraday trading.
Additional Insights: Motilal Oswal Financial Services Q2 Performance
Motilal Oswal Financial Services Ltd., another significant financial entity, reported a 111% YoY rise in net profit for Q2 FY25, reaching Rs 1,120 crore. Its EBITDA surged to Rs 1,815.98 crore, reflecting an 868 basis points expansion in EBITDA margin. This remarkable performance aligns with PNB’s success in Q2, highlighting the financial sector’s strong profitability this quarter.
Conclusion
Punjab National Bank’s Q2 FY25 results underscore its strategic growth, improved asset quality, and increased profitability, driving substantial market confidence. With an impressive YoY increase in net profit, decreased NPAs, and favorable EPS growth, PNB has exceeded market expectations, reinforcing its position in the financial sector.