PNB posts lower-than-expected Q1 net loss of Rs 940 crore as bad loans decline

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Punjab National Bank  (PNB) on Monday reported a lower-than-expected net loss of Rs 940 crore for the quarter-ended June. The loss was contained on the back of healthy interest income and fall in bad loans.

This is the scam-hit lender's second consecutive loss as for the quarter-ended March 2018, it had posted a massive loss of Rs 13,417 crore.

PNB had posted a net profit of Rs 343.40 crore for the same quarter last year.

Provisions and contingencies met expectations, falling 72 percent sequentially to Rs 5,758 crore. For the year-ago period, the bank's provisions stood at Rs 2,608.7 crore.

PNB is the second largest government-owned bank in the country.

NII and other income

During the quarter, net interest income (NII), the difference between interest earned and paid, beat expectations to rise 22 percent year-on-year to Rs 4,692 crore. Sequentially, the NII grew by 53 percent from Rs 3,063.3 crore.

Other income or non-interest income was lower by 16 percent YoY to Rs 1,959 crore. However, it grew 25.5 percent from March quarter’s Rs 1,561 crore.

Non-performing assets

Gross NPAs marginally reduced to 18.26 percent of total loans, down from 18.38 percent as on March end but rose from 13.66 percent in June last year.

Net NPA ratio fell to 10.58 percent from 11.24 percent as on March end but rose from 8.7 percent a year ago.

Loan Growth

PNB's loan growth as on June end 2018 grew nearly four percent to Rs 4.15 lakh crore while deposit growth remained flat at Rs 6.30 lakh crore.

Post results, PNB shares fell and at 1.30 pm local time, were trading 2.16 percent lower at Rs 88.20 apiece as compared to a 0.16 percent higher trade in BSE Sensex.