India’s fourth-largest lender Punjab National Bank reported an increase of 2% in the net profit for the quarter ended 30 September, beating analyst forecast. Following the earnings, PNB shares spiked 6.81% to the day’s high of Rs 210.75 on BSE. The net profit of the bank rose to Rs 5.61 billion for July-September quarter as compared to Rs 5.49 billion in the same period a year earlier. The bank has widely beaten Reuters estimate of Rs 4.33 billion.
The gross bad loans as a percentage of total loans stood at 13.31% at end-September compared with 13.66% at June-end quarter and 13.63% in the corresponding period a year earlier. Provisions for non-performing assets rose 64% to Rs 26.94 billion. The absolute gross NPA stood at Rs 576.3 billion at the end of September quarter vs Rs 577.2 billion at the end of June quarter.
The total income of the bank during the September quarter of 2017-18 grew by 4.15% to Rs 14,2.05 billion as against Rs 136.38 billion in the year-ago period. The operating profit of the bank rose 20% to Rs 32.79 billion during the quarter under review from Rs 27.32 billion in the same period a year ago.
Earlier last week on 24 October, following the announcement of government’s Rs 2.11 lakh crore bank recapitalisation mega plan PSU bank stocks rallied the most led by the shares of Punjab National Bank emerging as the top gainer. One the day after the recapitalisation plan was announced the stock of Punjab National Bank zoomed as much as 46% to Rs 202.05 on NSE.
Shares of Punjab National Bank hit the 52-week high of Rs 231.45 on 26 October 2017 and made a 52-week low of Rs 112 on 29 December 2016. Following the day after the PSU bank recapitalisation news broke, more than 32 crore shares of PNB were traded in just two days (25-26 October 2017) out of about 71.5 crore shares available to trade.