PNB Q3 net falls 42% to Rs 755 cr but asset quality better

According to CNBC-TV18 poll, analysts had expected the bank to report net profit of Rs 934 crore and net interest income of Rs 4,103 crore for the quarter.

Asset quality

Gross non-performing asset (NPA) as a percentage of gross advances declined 18 basis points (up 35 bps year-on-year) to 4.96 percent and net NPAs too slipped 27 bps (up 51 bps Y-o-Y) to 2.80 percent sequentially.

In absolute term, gross NPAs increased 0.4 percent (up 18.6 percent on yearly basis) to Rs 16,595.84 crore while net NPAs dropped 5.5 percent sequentially (up 19.7 percent year-on-year) to Rs 9,083.99 crore in the quarter gone by.

Provisions and contingencies slipped 19 percent (up 98 percent Y-o-Y) to Rs 1,590 crore on sequential basis. Provision coverage ratio climbed further to 58.55 percent in the quarter ended December 2013 from 55.27 percent in September quarter and 54.67 percent in June quarter FY14.

Other income fell marginally to Rs 938.43 crore from Rs 972 crore while tax expenses dropped to Rs 356.9 crore from Rs 574.7 crore year-on-year.

Meanwhile, the bank in its filing said an amount of Rs 166.18 crore was charged to profit & loss account during the quarter towards the amortisation relating to enhancement in gratuity limit and re-opening of pension option for existing employees.

"Unamortised liability carried forward Rs 830.91 crore shall be charged proportionately in accordance with the said RBI guidelines," it added.

The bank has declared an interim dividend of Rs 10 per share for the financial year 2013-14.

At 12:23 hours IST, the stock was up 5.44 percent at Rs 546 amid large volumes on the BSE.