Within the present context, the place a number of firms are posting blended financials throughout this market, there are notable gems of Indian PSUs that delivered good returns as per market expectations. On this article, we’ll set up an in depth comparability between these two large PSUs.
Monetary Highlights
Punjab Nationwide Financial institution (PNB) reported a internet curiosity earnings of Rs 42,782 crores in FY25, marking a 6.7 p.c enhance from Rs 40,083 crores in FY24. On a year-on-year (YoY) foundation, the financial institution earned Rs 10,757 crores in This fall FY25, up by 3.8 p.c from Rs 10,363 crores in This fall FY24. On a quarter-on-quarter (QoQ) foundation, internet curiosity earnings declined by 2.49 p.c from Rs 11,032 crores in Q3 FY25.
The financial institution posted a internet revenue of Rs 16,630 crores in FY25, up by 101.7 p.c from Rs 8,245 crores in FY24. On a YoY foundation, internet revenue rose by 51 p.c to Rs 4,567 crores in This fall FY25 from Rs 3,010 crores in This fall FY24. On a QoQ foundation, it elevated by 1.31 p.c from Rs 4,508 crores in Q3 FY25. As of March 2025, PNB’s internet curiosity margin (NIM) stood at 2.93 p.c, down from 3.09 p.c a 12 months earlier.
Union Financial institution of India reported a internet curiosity earnings of Rs 37,214 crores in FY25, up by 1.76 p.c from its FY24 earnings of Rs 36,570 crores. On a year-on-year foundation, it reported an earnings of Rs 9,514 crores in This fall FY25, up by 0.82 p.c from Rs 9,437 crores in This fall FY24. On a quarter-on-quarter foundation, it elevated by 2.96 p.c from Rs 9,240 crores.
It posted a internet revenue of Rs 17,987 crores in FY25, up by 31.79 p.c from its FY24 internet revenue of Rs 13,648 crores. On a year-on-year foundation, it reported a internet revenue of Rs 4,985 crores in This fall FY25, up by 51 p.c from Rs 3,311 crores in This fall FY24. On a quarter-on-quarter foundation, it elevated by 8.28 p.c from Rs 4,604 crores. Its NIM stands at 2.91 p.c in FY25 as in comparison with 3.10 p.c in FY24.
Deposits and Advances
Punjab Nationwide Financial institution (PNB) reported a robust efficiency by way of deposits and advances for the 12 months ended March 2025. Deposits grew by 14.4 p.c year-on-year (YoY) to Rs 15,66,623 crores in March 2025, up from Rs 13,69,713 crores in March 2024. On a quarter-on-quarter (QoQ) foundation, deposits elevated by 2.4 p.c from Rs 15,29,699 crores in December 2024. Inside this, CASA (Present Account Financial savings Account) deposits rose by 3.8 p.c YoY to Rs 5,73,543 crores in This fall FY25, in comparison with Rs 5,52,499 crores in This fall FY24.
Advances additionally recorded a wholesome rise, rising by 13.6 p.c YoY to Rs 11,16,637 crores in March 2025 from Rs 9,83,325 crores in March 2024. On a QoQ foundation, advances have been up 0.6 p.c, from Rs 11,10,292 crores. In the meantime, mortgage write-offs declined considerably to Rs 12,159 crores in FY25, in comparison with Rs 16,257 crores in FY24, reflecting improved asset high quality administration.
UBI’s Deposits grew by 7.22 p.c YoY to Rs 13,09,750 crores in March 2025 from Rs 12,21,528 crores in March 2024. On a QoQ foundation, it grew by 7.66 p.c from Rs 12,16,562 crores. Its CASA deposits grew by 3.95% to Rs. 4,26,325 crores in This fall FY25 as in comparison with Rs. 4,10,134 Crores a 12 months in the past.
Advances additionally grew by 8.62 p.c YoY to Rs 9,82,894 crores in March 2025 from Rs 9,04,884 crores in March 2024. On a QoQ foundation, it grew by 3.55 p.c from Rs 9,49,164 crores. Provisions for non-performing belongings elevated to 7,308 crores in FY25 from Rs 6,387 crores a 12 months in the past.
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Asset High quality
PNB’s GNPA% drastically improved to three.95 p.c in March 2025 as in comparison with 5.73 p.c a 12 months in the past. Its NNPA additionally improved to 0.40 p.c in March 2025 as in comparison with 0.73 p.c a 12 months in the past. It has a slippage ratio of 1.14 p.c as in comparison with 0.98 p.c a 12 months earlier.
As of March 2025, its Capital to Threat-weighted Property Ratio noticed a surge to 17.01 p.c from 15.97 p.c. Financial institution’s ROA improved by 25 bps on a YoY foundation to 1.02 p.c & ROE improved by 275 bps on a YoY foundation to 19.23 p.c throughout FY25.
UBI’s GNPA drastically improved to three.60 p.c in March 2025 as in comparison with 4.76 p.c a 12 months in the past. Its NNPA additionally improved to 0.63 p.c in March 2025 as in comparison with 1.03 p.c a 12 months in the past. It has a slippage ratio of 1.13 p.c as in comparison with 1.56 p.c a 12 months earlier.
As of March 2025, its capital adequacy noticed a surge to 18.02 p.c from 16.97 p.c. Financial institution’s ROA improved by 38 bps on a YoY foundation to 1.26 p.c & ROE improved by 395 bps on a YoY foundation to 17.20 p.c throughout FY25.
Conclusion
Each UBI and PNB reported good numbers, however PNB exhibited extra sturdy bottom-line enlargement (internet revenue doubled), superior deposit and credit score progress, and far decrease write-offs. UBI excelled in asset high quality, capital buffers, and return ranges, with superior ROA and higher ROE enchancment.
Written by Satyajeet Mukherjee
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