Punjab National Bank posts Rs 586.33 crore profit in March quarter

State-owned lender Punjab National Bank (PNB) on Friday reported a standalone net profit of Rs 586.33 for the fourth quarter ended March 31, 2020, on the back of higher net interest income and other income. The bank had reported a loss of Rs 697.20 crore in the year-ago quarter.

A Bloomberg poll of 6 analysts had estimated a profit of Rs 627.30 crore.

Net interest income — the difference between interest earned and interest expended rose 48.32% to Rs 6, 937.55 crore for the quarter ended 31 March. It was Rs 4,677.54 crore in the same quarter a year earlier. Non-interest income rose 47.95% to Rs 3, 742.20 crore for the March quarter.

Provision fell 4.39% during the March quarter to Rs 4,686.04 against Rs 4,901.31 crore in the corresponding quarter last year. Gross non-performing assets (NPAs) as a percentage of total loans fell to 14.12% in the March quarter, as compared to 14.21% a year and 12.99% in the previous quarter.

Net non-performing assets (NPAs) as a percentage of total loans fell to 14.12% in the March quarter, as compared to 14.21% a year ago and 12.99% in the previous quarter. Net non-performing assets (NPAs) fell at 5.73% in the same quarter last year and 4.03% in the previous quarter.

As of March 31, 2021, the Capital Adequacy Ratio (CAR) of the lender stood at 14.32%.

“The current coronavirus situation continues to be uncertain and Bank is evaluating the impact on an ongoing basis. The extent to which the covid-19 pandemic will impact the Bank’s result will depend on future development, which are highly uncertain including among other things, the success of vaccination derive,” the lender said in a filing.

Total Deposits at the end of March quarter grew 57.10% to Rs 11.06 trillion as compared with Rs 7.04 trillion in the year-ago period and advances rose 42.80% year over year to Rs 6.74 trillion.

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time