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Punjab National Bank Key Financial Ratios

NSE:PNB | BANKS

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Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2024 - FY 2025

Punjab National Bank's revenue grew 14.8% to 1,404.57B and net profit grew 102.9% to 184.80B YoY in FY2025, indicating healthy business momentum.

Understanding Company Performance

In FY 2025, Punjab National Bank's revenue grew by 14.8% year-over-year. Revenue = interest earned + other income. Gross Profit = revenue minus interest expenditure. Net Profit is the bottom line after all expenses, provisions, and taxes. Consistent growth across all three signals a healthy, expanding bank.

Net Interest Margin (NIM)

2-year trend showing profitability efficiency

FY 2024 - FY 2025

Punjab National Bank's NIM of 2.9% in FY2025 indicates adequate interest spreads.

Understanding Net Interest Margin

In FY 2025, Punjab National Bank reported a NIM of 2.93%. NIM = (Interest Earned - Interest Paid) / Average Earning Assets. For Indian banks, 2.5-4% is typically healthy. Higher NIM indicates better spread management between lending rates and deposit costs. Consistent or improving NIM suggests strong pricing power.

Net NPA Ratio

2-year trend showing asset quality

Punjab National Bank's net NPA ratio of 0.4% in FY2025 indicates strong asset quality with well-managed credit risk.

Understanding Net NPA Ratio

In FY 2025, Punjab National Bank reported a net NPA ratio of 0.40%. Net NPA Ratio = (Gross NPAs - Provisions) / Total Loans. Measures bad loans after provisions as a percentage of total loans. Below 2% is healthy for Indian banks; above 3-4% signals stress. A declining trend indicates improving asset quality and effective risk management.

Return on Assets (ROA) & Return on Equity (ROE)

2-year trend showing profitability efficiency

Punjab National Bank's ROA of 1.0% in FY2025 indicates moderate asset utilisation, with ROE at 13.8%.

Understanding ROA & ROE

In FY 2025, Punjab National Bank reported an ROA of 0.99% and an ROE of 13.8%. ROA = (Net Income / Total Assets) x 100; ROE = (Net Income / Equity) x 100. The gap between ROE and ROA reveals leverage impact. For Indian banks, ROA of 0.8-1.5% and ROE of 12-18% are healthy. ROA is the primary indicator as it cannot be inflated by leverage.

Loan to Deposit Ratio

2-year trend showing liquidity and lending efficiency

Punjab National Bank's loan-to-deposit ratio of 68.9% in FY2025 indicates conservative lending — deposits are underutilised.

Understanding Loan to Deposit Ratio

In FY 2025, Punjab National Bank reported a loan-to-deposit ratio of 68.9%. LDR = (Total Loans / Total Deposits) x 100. Optimal range is 70-85% for Indian banks. Above 90% signals liquidity risk; below 65% suggests deposit underutilisation. A stable trend indicates balanced lending practices and adequate liquidity management.

Financial Leverage Ratio

2-year trend showing capital structure efficiency

Punjab National Bank's financial leverage of 13.9x in FY2025 indicates well-balanced capital structure within typical banking norms.

Understanding Financial Leverage Ratio

In FY 2025, Punjab National Bank reported a financial leverage ratio of 13.9x. Financial Leverage = Total Assets / Total Equity. Expressed as a multiple (e.g., 10x). For Indian banks, 10-15x is typical. Higher leverage amplifies returns but increases risk. Regulatory capital requirements set upper limits. Compare with peers for context.

Borrowings to Networth Ratio

2-year trend showing leverage and financial stability

Punjab National Bank's borrowings-to-networth ratio of 79.1% in FY2025 indicates moderate borrowing levels.

Understanding Borrowings to Networth Ratio

In FY 2025, Punjab National Bank reported a borrowings-to-networth ratio of 79.1%. Borrowings/Networth = (Total Borrowings / Shareholders' Equity) x 100. Lower is better — indicates less reliance on debt. Banks naturally carry higher leverage than other industries. Consistent increases may signal aggressive growth or capital constraints. Compare with peer banks for context.

Stock Dilution

Year-over-year change in diluted shares outstanding

Punjab National Bank's diluted shares increased 2.2% YoY in FY2025 — share dilution.

Over 2 years (FY2024–FY2025), diluted shares increased 2.2% from 11.01B to 11.26B, indicating cumulative dilution.

Understanding Stock Dilution

In FY 2025, Punjab National Bank's diluted shares increased by 2.2% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025