Punjab National Bank Q2 net profit falls 63 per cent to Rs 411 crore
State-owned Punjab National Bank (PNB) on Tuesday (November 1) reported a 63 per cent decline in standalone net profit to ₹411 crore for the September quarter on account of higher provisioning for bad loans.
The bank had posted a net profit of ₹1,105 crore for the same period in 2021. Total income in the second quarter of the current fiscal increased to ₹23,001.26 crore as against ₹21,262.32 in the July-September period in 2021, PNB said in a regulatory filing.
The lender’s interest income also rose to ₹20,154 crore from ₹17,980 crore in the same quarter in 2021. Net interest income increased by 30.2 per cent to ₹8,271 crore in the quarter as compared to the same period in 2021.
With regard to asset quality, improvement was witnessed with the gross Non Performing Assets (NPAs) declining to 10.48 per cent of the gross advances from 13.36 per cent earlier.
Also Read: RBI to launch first pilot of Digital Rupee on Tues; identifies 9 banks for rollout
Provisions for bad loans increase
In absolute terms, the gross NPAs or bad loans stood at ₹87,034.79 crore at the end of the second quarter of FY23 compared to ₹1,00,290.85 crore in FY22. The net NPA, too, declined to 3.80 per cent as against 5.49 per cent.
However, provisions for bad loans increased to ₹3,555.98 crore in the July-September quarter of FY23 as against ₹2,692.74 crore in the same period of FY22.
As on September 2022, the Provisioning Coverage Ratio improved to 83.96 per cent as compared to 80.77 per cent at the end of September 2021. During the quarter, the bank has not availed any dispensation in respect of frauds in terms of option available as per RBI Circular, it said.
Further, it said, during the quarter, the bank has charged the entire un-amortised portion of ₹651.20 crore as on June 30, 2022. Therefore, there is no amount which has been carried forward to subsequent quarters, it said.
Also Read: Maharashtra: General consent restored, CBI can probe ₹20,312-cr bank fraud cases
Net profit declines by 55%
On a consolidated basis, the bank reported a net profit of ₹494 crore in the quarter ended September as against ₹1,104 crore in 2021, registering a decline of 55 per cent.
The consolidated financial result of the bank comprises five subsidiaries and 15 associates. Global Gross Business increased by 9.33 per cent on Year over Year (YoY) basis to ₹20,23,712 crore as against ₹18,51,097 crore in September 21.
The capital adequacy ratio of the bank declined to 14.74 per cent at the end of September compared to 15.20 per cent in the year-ago period. Shares of PNB fell over 6 per cent after the firm reported a 63 per cent decline in standalone net profit for the September quarter.
The stock declined 5.87 per cent to settle at ₹40.10 on the BSE. During the day, it tanked 6.33 per cent to ₹39.90.
(With inputs from agencies)
