PNB Q1 net profit falls 70% to Rs 308 crore, asset quality improves

State-owned Punjab National Bank on Thursday reported a 70 percent drop in stand-alone net profit to Rs 308.44 crore in the June quarter, mainly due to higher bad loan provisions and decline in interest income.

The bank had recorded a net profit of Rs 1,023.46 crore in the same period a year ago.

Total income in the first quarter of the current fiscal year fell to Rs 21,294 crore. In the period of a year ago, according to a regulatory filing, it was Rs 22,515 crore.

The lender’s interest income fell to Rs 18,757 crore from Rs 18,921 crore in the same quarter a year ago.

Gross non-performing assets (NPAs) fell to 11.2 percent of gross advances in June 2022, from 14.33 percent a year ago. In March 2022, that was 11.78 percent.

In absolute terms, gross NPAs or bad loans stood at Rs 90,167.10 crore at the end of the first quarter of FY23, compared to Rs 1,04,075.56 crore a year earlier.

Net NPA also fell to 4.26, from 5.84 percent in the same period of the previous year.

However, bad loan provisions increased to Rs 4,814 crore in the April-June FY23 period from Rs 3,248 crore in the same period a year ago.

As in June of this year, the Provisioning Coverage Ratio was 83.04 percent, compared to 80.26 percent at the end of June 2021.

“The Covid-19 pandemic has negatively impacted economic activity around the world, including the Indian economy for more than two years. However, the bank’s results, operations and asset quality have not been greatly affected by the pandemic,” thus it.

In the last quarter of June, the bank’s operating profit fell to Rs 5,379.21 crore.

On a consolidated basis, the bank reported a net profit of Rs 281.73 crore in the quarter ended June compared to Rs 1,168.33 crore a year ago.

The bank’s consolidated financial result includes five subsidiaries and 15 associates.

The bank’s solvency ratio fell to 14.62 percent at the end of June, compared to 15.19 percent in the same period a year ago.

(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content was automatically generated from a syndicated feed.)

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