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Punjab National Bank clocks ₹506 crore profit in Q3 – Mint

Punjab National Bank (PNB) on Friday reported a standalone net profit of 506.03 crore for December quarter 2020-21.

It had posted a net loss of 492.28 crore in the year-ago period.

Total income in the quarter under review rose to 23,298.53 crore as against 15,967.49 crore, PNB said in a regulatory filing.

On a consolidated basis, there was a profit of 585.77 crore during the latest quarter. The lender had posted a net loss of 501.93 crore in same period of 2019-20.

Consolidated income increased to 23,639.41 crore from 16,211.24 crore.

PNB said the current results are not comparable with the year-ago period because December quarter 2019-20 figures are of pre-amalgamated period.

With effect from April 1, 2020, PNB merged United Bank of India and Oriental Bank of Commerce with itself following government’s merger plan.

On the asset front, the bank witnessed substantial improvement by cutting its gross non-performing assets (NPAs) as a percentage of gross advances by December-end 2020, to 12.99 per cent from 16.30 per cent by the same period a year ago.

In absolute value, gross NPAs stood at 94,479.33 crore by the end of December 2020 as against 76,809.20 crore by the year- ago same period.

The net NPAs ratio also softened to 4.03 per cent ( 26,598.13 crore) from 7.18 per cent ( 30,518.92 crore).

After March 31, 2020, the bank changed its accounting policy for appropriation of recovery in NPA accounts from earlier policy, which has resulted in increase in profit before tax by 178.48 crore in third quarter and by 449.94 crore in April-December period, PNB said.

PNB stock closed 0.9 per cent down at 40.10 on BSE.

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