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Delhi-headquarteterd Punjab National Bank on Tuesday reported a net profit of Rs 507 crore for three month period ending September 30.
On year-on-year basis, the corresponding quarter of previous fiscal saw loss of Rs 4,532 crore, however on sequential basis net profit is down by nearly 50 per cent as this amount was Rs 1,018.63 crore during first quarter i.e. April-June period of 2018-19.
Talking about net profit, Managing Director-cum-Chief Executive Officer S S Malikarjun Rao said because of provisioning for fraud as reported, net profit is down on quarter to quarter basis. During the quarter, bank availed dispensation for deferment of provision in respect of frauds amounting to Rs 2,580.72 crore. Accordingly, an amount of Rs 645.19 crore charged to profit and loss account during the quarter and Rs 1,935.53 crore deferred to subsequent quarter.
Bank's net non performing asset (NPA) ratio at the end of September 30 was 7.65 per cent. Bank also apprehends fresh slippage of over Rs 7,000 crore during second half of current fiscal. Still, Rao said, net NPA will be below 6 per cent by March 2020.
Gross non-performing assets accounted for 16.76 per cent of the gross advances at the end of September, lower than 17.16 per cent a year ago. Provisions for bad loans sharply declined to Rs 3,253.32 crore in the quarter, against Rs 7,733.27 crore in July-September 2018
The bank’s total income during July-September quarter rose to Rs 15,556.61 crore as against Rs 14,035.88 crore in the same quarter last year, the bank said. 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. Bank expects credit growth to touch 10 per cent during this fiscal.
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