New Delhi, Nov 5 (SocialNews.XYZ) India's second largest state-run lender Punjab National Bank (PNB) on Tuesday posted a net profit of Rs 507.05 crore for the second quarter ending September, against a loss of Rs 4,532.35 crore incurred in the corresponding quarter of last year, although the bank's latest performance comes amidst a weakening of its asset quality.
PNB's non-interest income during the quarter in consideration shot up 32.5 per cent to Rs 2,264.7 crore and pre-provision operating profit grew 25.4 per cent to Rs 3,562 crore compared to the same period last year.
Net interest income during the July-September quarter increased 7.3 per cent year-on-year (YoY) to Rs 4,263.8 crore, with credit de-growth of 0.7 per cent YoY.
Deposits in the second quarter increased 7 per cent YoY.
Intra-day, PNB shares were trading lower on the bSE at Rs 64.60 a share, or down by 5.28 per cent on its previous close .
The bank has made Rs 2,928.90 crore in provisions for the quarter, which were 44 per cent higher than Rs 2,023.31 crore provisions made in the previous June quarter but 70 per cent lower than Rs 9,757.90 crore provisions the bank made crore in the year-ago quarter.
Gross non-performing assets (NPAs or bad loans) as percentage of total advances rose sequentially to 16.76 per cent in the September quarter from 16.49 per cent in the June quarter. It stood at 17.16 per cent in the year-ago quarter.
"During the quarter, bank has availed dispensation for deferment of provision in respect of frauds amounting to Rs 2580.72 crore. Accordingly, an amount of Rs 645.19 crore has been charged to profit and loss account during the quarter and Rs 1,935.53 crore has been deferred to to subsequent quarter," the bank said in a statement.
Asset quality deteriorated in the September quarter, with gross NPAs as a percentage of gross advances rising 27 basis points (bps) QoQ to 16.76 per cent and net NPA climbing 48 bps to 7.65 per cent QoQ.
Provisions and contingencies for the quarter in consideration stood at Rs 2,928.9 crore, rising 48 per cent QoQ but fell 70 per cent YoY. Provision coverage ratio declined to 73.58 per cent, against 74.60 per cent in the previous June quarter.
-IANS
ana/sn/bc
( 386 Words)
2019-11-05-15:48:07
Source: IANS
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz
This website uses cookies.
