Punjab National Bank reports Q1 net profit of ₹ 308 crore

Aided by a much stronger balance sheet and larger business mix post its amalgamation with Oriental Bank of Commerce (OBC) and United Bank of India (UBI), the country’s second largest public sector lender Punjab National Bank (PNB) has recorded a standalone net profit of ₹308 crore for the quarter ended June 30 this year. The consolidated net profit for the quarter under review stood at ₹538 crore.

This is the first quarterly performance after the three way amalgamation between OBC, UBI and erstwhile PNB came into effect on April 1 this year.

The latest results include operations of erstwhile OBC and UBI. Hence the quarterly standalone performance of PNB for quarter ended June 30,2020 is not comparable with the March quarter (net loss of ₹697 crore) or the same first quarter (net profit of ₹1,019 crore) of last fiscal, sources said. PNB Board had adopted the results late last evening, they said.

Total income of the amalgamated entity PNB for the quarter ended March 30,2020 stood at ₹24,293 crore. During the first quarter ended June 30 last year, the total income of erstwhile PNB (before amalgamation) stood at ₹15,162 crore.

Operating profit for the quarter under review stood at ₹5,281 crore (₹3,481 crore) and provision towards non-performing assets ( NPA) stood at ₹4,836 crore (₹2,147 crore).

During the quarter, PNB has availed dispensation of deferment of provision in respect of frauds amounting to ₹1,694 crore. While ₹423 crore has been charged to profit and loss account, the balance ₹1,271 crore has been deferred to subsequent quarters, sources added.