PNB back in black with ₹586 crore net profit in March quarter
Mumbai: State-owned lender Punjab National Bank (PNB) on Friday reported standalone net profit of ₹586.33 crore for the quarter ended March 31, 2020 on the back higher net interest income and other income. The bank had reported a loss of ₹697.20 crore in the year ago quarter.
A Bloomberg poll of 6 analysts had estimated a profit of ₹627.30 crore.
Net interest income — the difference between interest earned and interest expended rose 48.32% to ₹6,937.55 crore for the quarter ended 31 March. It was ₹4,677.54 crore in the same quarter a year earlier.
Non-interest income rose 47.95% to ₹3,742.20 crore for the March quarter.
Provisions fell 4.39% during the March quarter to ₹4,686.04 crore against ₹4,901.31 crore in the corresponding quarter last year.
Gross non-performing assets (NPAs) as a percentage of total loans fell to 14.12% in the March quarter, as compared to 14.21% a year ago and 12.99% in the previous quarter.
Net non-performing assets (NPAs) fell at 5.73% from 5.78% in the same quarter last year and 4.03% in the previous quarter.
As of March 31, 2021, the Capital Adequacy Ratio (CAR) of the lender stood at 14.32%.
“The current coronavirus situation continues to be uncertain and the Bank is evaluating the impact on an ongoing basis. The extent to which the covid-19 pandemic will impact the Bank’s results will depend on future developments, which are highly uncertain including among other things, the success of vaccination drive,” the lender said in a filing.
Total Deposits at the end of March quarter grew 57.10% to ₹11.06 trillion as compared with ₹7.04 trillion in the year-ago period and advances rose 42.80% y-o-y to ₹6.74 trillion.
Shares of PNB closed lower by 1.37% at ₹43.10 on NSE, while the benchmark index, Nifty lost 0.13% to close at 15,670.25 points.
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