Banking

State-owned Punjab National Bank (PNB) posted a remarkable 52% increase in net profit for the March quarter of the 2025 financial year, reaching ₹4,567 crore. This growth was driven by higher income and improved asset quality, with the bank reducing its non-performing assets (NPAs). In a broader view, PNB's full-year profit doubled to ₹16,630 crore. Additionally, the bank announced a ₹2.90 per share dividend for shareholders and revealed plans to raise up to ₹8,000 crore through bond issuance in the coming year.

Punjab Chief Minister Bhagwant Mann has called for accelerated recovery of outstanding loans from defaulters in the state’s cooperative banks to ensure unhindered lending, particularly to the agriculture sector. Highlighting the negative impact of defaulting large farmers and government employees, Mann emphasized the importance of timely loan repayments for the sustainability of cooperative banking in the state. Despite offering incentives for prompt repayment, the recovery of crop loans remains subpar, with only 65% of loans being recovered.

India's public sector banks (PSBs) have collectively reported a record net profit of Rs 1.78 lakh crore in the financial year ended March 2025, marking a robust 26% year-on-year increase. This performance is a far cry from the staggering losses of Rs 85,390 crore reported in FY18 and reflects a significant turnaround driven by strategic reforms, recapitalisation efforts, and improved governance. The State Bank of India led the charge, contributing over 40% of total earnings.

Indian Overseas Bank (IOB), a leading public sector lender, has strongly refuted widespread rumors suggesting the closure of its ATM network amidst geopolitical tensions. In a formal statement, the bank assured customers that all 3,497 ATMs across its network remain fully operational and urged the public to rely on verified communication channels. The clarification follows speculative social media chatter triggered by rising tensions between India and Pakistan.

Indian equity markets faced sharp declines in late morning trade Friday, driven by heightened tensions with Pakistan following a series of military exchanges across the border. The BSE Sensex tumbled over 770 points, while the NSE Nifty shed more than 200 points amid fears of further escalation. Despite the geopolitical shock, analysts remain cautiously optimistic, citing India’s military superiority, resilient macroeconomic fundamentals, and continued foreign investment inflows.

Kotak Mahindra Bank's financial results for the fourth quarter of FY25 reveal a mixed performance, with a notable decline in profit driven by higher provisions for potential bad loans. Despite strong growth in both loans and deposits, the bank saw a 14% drop in standalone net profit, amounting to ₹3,552 crore. The increase in provisions for bad loans, which more than tripled compared to the previous quarter, played a significant role in this downturn. However, the bank demonstrated resilience, with a slight improvement in asset quality and a solid capital position.

Indian Bank, a leading public sector lender, reported a strong 32% year-on-year rise in net profit for the fourth quarter of FY2024–25, reaching Rs. 2,956 crore. The stellar performance was driven by improved interest income, tighter control over bad loans, and a surge in the bank’s core operational earnings. Asset quality metrics showed notable improvement, with gross NPAs and net NPAs declining sharply. For the full year, profit soared by 35% to Rs. 10,918 crore. With capital adequacy strengthening and profitability metrics peaking, the bank’s board has proposed a Rs.

Indian Overseas Bank (IOB), a state-owned lender, reported a 30% year-on-year increase in net profit for the March quarter, reaching Rs. 1,051 crore, driven by stronger interest income and improved asset quality. The bank also witnessed a significant decline in bad loans, contributing to lower provisioning costs. Total income for the quarter rose to Rs. 9,215 crore, while interest income climbed sharply to Rs. 7,634 crore. Encouraged by improved financials and capital buffers, IOB’s board has approved a capital raise of up to Rs.

In a strategic move with significant geopolitical and financial implications, India has appointed Parameswaran Iyer, currently an Executive Director at the World Bank, as its nominee to the International Monetary Fund’s (IMF) Executive Board. This interim assignment follows the abrupt termination of K.V. Subramanian’s tenure—six months ahead of schedule—and comes just days before a pivotal IMF meeting on May 9. The board will vote on a new USD 1.3 billion climate resilience loan and review Pakistan’s USD 7 billion bailout.

Kotak Mahindra Bank faced sharp selling pressure on the bourses after posting a weaker-than-expected financial performance for the March quarter of FY 2024–25. Shares of the private sector lender plummeted nearly 6% on both the BSE and NSE following a 7.57% year-on-year decline in consolidated net profit to Rs. 4,933 crore. The drop was driven by stress in the microfinance lending segment and a contraction in net interest margin.