PNB net up 14% on better asset quality, lower provisions

Written by fe Bureau | New Delhi | Updated: Feb 1 2013, 07:50am hrs
Punjab National Bank (PNB) net profit surged to R1,305.62 crore in Q3 FY 13, up from R1,150 crore last year. It reported strong numbers for the third quarter backed by lower provisions and improved asset quality.

Total Income of the bank rose to R11,518.95 crore in the December quarter from R10,435.12 crore last year. PNB share closed higher 9.37% at R912.45 on BSE.

PNB chairman and managing director KR Kamath said the rise in net profit was due to to decline in provisions against NPAs, higher cash recovery and lower cost of funds. The banks gross NPAs ratio rose to 4.61% at the end of third quarter from 2.42% in December, 2011. Net NPAs also rose to 2.56% from 1.11% in the same quarter of 2011-12.

The net interest margin (NIM) of the bank stood at 3.47% at December-end 2012, and the bank is expecting to the close the fiscal with a NIM of 3.5%, Kamath said. Total business as on December 31 stood at R6,83,098 crore, up from R6,19,122 crore at end of same quarter of the previous fiscal, registering growth of 10.3%.

Total deposits rose 8.2% to R3,85,785 crore from R3,56,517 crore last year. Advances of the bank rose 13.2% to R2,97,313 crore from R2,62,605 crore in the same period last year. Net profit for nine months ended December 2012 amounted to R3,617 crore, which is higher by 4.5% compared with R3,460 crore last year.

Its low-cost deposits or Casa (current account savings account) deposits grew 13.1% to R1,42,442 crore from R1,25,966 crore last year. Casa share in domestic deposits stood at 38.44% in Q3 FY 13, improving from 36.2% in Q3 FY12. The bank's credit-deposit ratio stood at 77.07% as in December-end.