PNB Q1 net up 2.3% at Rs 1,275, NPAs but NPAs surge
Public sector lender Punjab National Bank (PNB) reported a muted rise of 2.3 percent year-on-year in its first quarter (April-June) net profit at Rs 1,275 crore, dented by significant surge in its bad loans or non-performing assets (NPAs).
July 26, 2013 / 13:58 IST
Moneycontrol Bureau
Public sector lender Punjab National Bank (PNB) reported a muted rise of 2.3 percent year-on-year in its first quarter (April-June) net profit at Rs 1,275 crore, dented by significant surge in its bad loans or non-performing assets (NPAs). Net interest income or the difference between interest earned and paid out, grew by 5.7 percent y-o-y to Rs 3,907 crore. While the net profit was below market expectations, NII was marginally higher than the estimates. Net interest margin was little changed at 3.52 percent quarter-on-quarter. Also read: Here's what to expect from Punjab National Bank Q1 earningsAnalysts on an average had expected the bank to report net profit at Rs 1,196 crore and net interest income at Rs 3,829 crore.At 13:45 hours IST, the stock tanked nearly 6 percent to trade at Rs 590 on the NSE, after touching 4-year low at Rs 585.95.In absolute terms, gross NPAs shot up 51 percent to Rs 15,091 crore while net NPAs ballooned 84 percent to Rs 9,060 crore. Gross NPA ratio stood at 4.84 percent versus 3.34 percent. Net NPA ratio was at 2.98 percent compared with 1.68 percent a year back. Must read: Indian Overseas Bk Q1 net dips 46%, provisions spikeThe bank expanded its loans just by 4 percent y-o-y to Rs 3.05 lakh crore while deposits inched up 3 percent y-o-y to Rs 3.97 lakh crore. Provisions and contingencies upped 3.3 percent y-o-y to Rs 1,066 crore during the quarter. Other income increased 15 y-o-y to Rs 1,342 crore acting as the saving grace for the bank. Provision coverage ratio was 54.67 percent as on June 30, 2013 while capital adequacy ratio (as per Basel III) stood at 11.79 percent.saikat.das@network18online.com Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
