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Informist, Wednesday, Jul. 23, 2025

--PNB Gilts Apr-Jun net profit INR 1.60 bln vs INR 534.41 mln year ago 

--PNB Gilts Apr-Jun revenue INR 5.63 bln vs INR 4.40 bln year ago 

By Aaryan Khanna

NEW DELHI – PNB Gilts Ltd. tripled its net profit for the June quarter on a year-on-year basis as its net gains on securities shot up while finance costs fell. The primary dealership's business is to be a market maker in the fixed income market, and much of its revenues come from gains or losses in securities.

The New Delhi-based company reported a net profit of INR 1.60 billion for the June quarter, from INR 534.41 million a year ago. Its net gain on securities, realised and unrealised, rose to INR 1.57 billion, five times higher than in the year-ago period. This came at a time when the Reserve Bank of India's Monetary Policy Committee initiated its first rate-cutting cycle in nearly five years from February, cutting the policy repo rate by 100 basis points until June.

Consequently, the 10-year benchmark government bond yield fell 26 bps in Apr-Jun to 6.32%, going as low as 6.11% in June, the lowest in nearly four years. The earnings were released during market hours. At 1442 IST, the company's shares were up 7.3% at INR 106.05, after having risen over 10% soon after the result.

Interest income was marginally lower on year at INR 4.04 billion, but with the gains from securities, total revenue from operations rose 28% from the year-ago period to INR 5.63 biilion. Even as the company's top line expanded at a healthy pace, expenses shrank on year in the reporting quarter.

The total expenses fell to INR 3.50 billion, down from INR 3.69 billion a year ago, led by the decrease in finance costs. Finance costs shrank 8.5% to INR 3.24 billion in the June quarter. The fees and commission expenses of PNB Gilts continue to dwarf income from the segment, but made up only a small part of the company's result. In Apr-Jun, the fees and commission expenses was INR 52.70 million, nearly double the revenue from the segment. Meanwhile, employee expenses also nearly tripled on year to around INR 115.00 million.

Like in Jan-Mar, income from exceptional items was marginal for the reporting quarter, gaining from interest payments on written-off bonds. However, the firm's tax expenses also tripled on year to INR 529.38 million, including deferred tax of INR 191.12 billion. PNB Gilts is a subsidiary of Punjab National Bank, which holds 74.07% stake in the primary dealer, with the public holding the rest of the shares.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Rajeev Pai

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