PNB profits down 93 percent


PNB Net Profit dips down

Higher provisioning and worsening asset quality drove down Punjab National Bank’s third quarter bottomline performance. Net profit during the quarter totaled Rs. 51 crore, down 93.4 per cent over Rs. 775 crore reported in same quarter last fiscal.The bottomline performance for the quarter under review was bolstered by tax write-back of Rs. 909 crore.

The second largest public sector lender after SBI had reported a net profit of Rs. 621 crore in the second quarter this fiscal. Total income in Q3 grew 7.64 per cent to Rs. 13,891 crore ( Rs. 12,905 crore), and operating profit rose to Rs. 2,918 crore (Rs. 2,751 crore).

Usha Ananthasubramanian, Managing Director & CEO, PNB, said that the clean-up of bad loans in bank’s balance sheet has begun, but the pain may not yet be over. There is every possibility of asset quality pain continuing in the fourth quarter, she added.

“The Q3 performance from the operating profit point of view has been robust. Internally, PNB is a robust bank while we have to externally carry this pain. This quarter has been very bad for assset quality,” she said.

PNB is currently in talks with the Centre for infusion of more Tier-I capital, she said. The bank had recently raised Tier-II bonds of Rs. 1,500 crore, she added.In the third quarter, PNB’s capital adequacy ratio stood at 11.25 per cent as against 12.2 per cent in previous quarter.

Gross non-performing assets (NPAs) climbed to 8.47 per cent in third quarter as against 6.36 per cent in previous quarter. Net NPA stood at 5.86 (3.99 per cent in previous quarter). In absolute terms, gross NPA rose 38 per cent at Rs. 34,338 crore in third quarter as against Rs. 24,945 crore in previous quarter. Net NPA jumped 51.3 per cent at Rs. 22,983 crore ( Rs. 15,187 crore).


Leave a Reply