PNB Raises FY24 Profit Guidance to Rs 7,000 cr

New Delhi, Jan 28 (PTI) Enthused by a stellar performance in the third quarter, state-owned Punjab National Bank (PNB) has raised its profit guidance to Rs 7,000-7,500 crore for the current financial year.

Earlier, the second largest lender had set a profit estimate of Rs 6,000 crore for the ongoing fiscal.

With a 253 per cent jump in the net profit in the third quarter, the bottom line of the bank in the three-quarters of FY24 crossed Rs 5,230 crore.

The bank has revised the earlier profit target of Rs 6,000 crore to Rs 7,000-7,500 crore for the current financial year, PNB MD and CEO Atul Kumar Goel said.

Going by revised guidance, the fourth quarter profit would be upwards of Rs 2,000 crore as well. In the third quarter ended December 2023, the bank earned a profit of Rs 2,223 crore, registering an over 253 per cent jump over the same quarter a year ago.

Addressing shareholders last year, Goyal had said FY24 would be "a golden year" for Punjab National Bank due to its multi-pronged strategy and steady focus.

"The strategy relies on increasing market share, which includes boosting both CASA (Current Account Savings Account) share and increasing credit offtake, especially in the RAM (Retail, Agriculture and MSME) segment; improving asset quality through increasing the rate of recoveries, minimising slippages, robust monitoring of special accounts to prevent their movement to the delinquent category and enhanced collections efficiency," he had said.

Sharing the outlook on credit growth, Goyal said it would be 12-13 per cent while deposit growth will be 10-11 per cent in the current fiscal.

Net interest margin (NIM) would be 2.9-3 per cent against 3.11 per cent at the December-end 2023.