Pulled down by higher provisioning for bad loans, Punjab National Bank’s net profit during the June quarter nearly halved to Rs 721 crore.
The country’s second largest public sector lender’s first quarter net profit for the current fiscal showed a 48.68 per cent decline from Rs 1,405 crore reported in the same quarter of 2014-15 fiscal.
Gross non-performing assets (NPAs) of the bank increased from Rs 25,397 crore in the June quarter of current fiscal against Rs 19,603 crore in the same quarter of last fiscal, as per data on the NSE.
Gross NPA as a percentage of total advances rose to 6.47 per cent in the June quarter from 5.48 per cent in the year-ago period.
Provisioning during the quarter rose to Rs 1,811 crore from Rs 928 crore.
Interest income of the bank rose to Rs 12,035 crore during the first quarter, up nearly 4 per cent, from Rs 11,589 crore in the same quarter last fiscal.
Standalone total income rose to Rs 13,432 crore from Rs 12,825 crore.
PNB shares were trading 4.55 per cent higher at Rs 141.30 on the NSE.