PNB Q2 profit soars by 78 pc to Rs 1,105 cr
The banks operating profit too declined to Rs 4,021.12 crore from Rs 5,674.91 crore in the same quarter in the previous financial year.On the asset quality front, the lenders gross non-performing assets NPAs increased marginally to 13.63 per cent of the gross advances at the end of September 2021, from 13.43 per cent a year ago period.
State-owned Punjab National Bank (PNB) on Wednesday reported a 78 per cent rise in net profit to Rs 1,105 crore for the second quarter ended on September 30 despite a fall in income.
The country's second-largest lender had posted a net profit of Rs 620.81 crore during the corresponding quarter a year ago.
However, the bank's total income during the July-September quarter declined to Rs 21,262.32 crore as against Rs 23,279.79 crore in the corresponding period last year, PNB said in a regulatory filing. The bank's operating profit too declined to Rs 4,021.12 crore from Rs 5,674.91 crore in the same quarter in the previous financial year.
On the asset quality front, the lender's gross non-performing assets (NPAs) increased marginally to 13.63 per cent of the gross advances at the end of September 2021, from 13.43 per cent a year ago period. Net NPAs also increased to 5.49 per cent as against 4.75 per cent a year ago.
However, provisions for bad loans declined to Rs 2,692.74 crore in the quarter, against Rs 3,811.17 crore in July-September 2020.
Provisions (other than tax) and contingencies declined to Rs 3,261.37 crore as against Rs 4,696.15 crore at the end of the second quarter of previous fiscal.
The government holding in the bank stood at 73.15 per cent at the end of September quarter. The Provisioning Coverage Ratio as of September 30, 2021, works out to 80.77 per cent compared to 83 per cent, it said.
Capital-to-risk-weighted assets ratio (CRAR) as per Basel-III increased to 15.20 per cent as against 12.8 per cent at the end of September 2020 quarter. It further said the extent to which the COVID-19 pandemic will impact the bank's results will depend on future developments. ''The major identified challenges for the bank would arise from eroding cash-flows and extended working capital cycles. The bank is gearing itself on all the fronts to meet these challenges,'' it said.
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