Public sector lender Punjab National Bank (PNB) on Tuesday reported a net profit of `262 crore in the March quarter of FY17. The profit was aided by higher other income at Rs 3,103 crore, up 68% on a year-on-year (y-o-y) basis. PNB’s operating profit at Rs 6,232 crore was more than twice of what it had reported in the same period last year. Its net interest income — difference between interest earned and interest expended — stood at Rs 3,684 crore, up 33% y-o-y and its net interest margin — a key measure of profitability — stood at 2.38%. PNB managing director & chief executive officer Sunil Mehta said among advances to industries, the bank has grown well in chemical & chemical products along with infrastructure.
“Among infrastructure loans, we have grown by 2.1% y-o-y in power since most of our loanbook was moved to investment category under the Uday scheme,” he said. The bank’s loans to industry fell 4.5% y-o-y to Rs 1.49 lakh crore in Q4FY17. Loans to large industry stood at Rs 1.2 lakh crore in the March quarter of FY17, down 2.1% y-o-y. Asset quality at the country’s second largest public sector lender improved in the March quarter with its gross non-performing assets (NPAs) as a percentage of total advances stood at 12.53%, down 117 bps sequentially.
The bank’s net NPAs stood at 7.81%, down 28 bps sequentially. PNB’s cash recoveries and upgradation in the March quarter stood at Rs 10,677 crore and Rs 2,981 crore, respectively. PNB’s total advances stood at Rs 3.97 lakh crore in the March quarter, up 5% y-o-y and its total domestic deposits stood at Rs 5.65 lakh crore, up 14.5% y-o-y. Its share of current account and savings account (CASA) deposits stood at Rs 2.6 lakh crore or 45.97% of its total domestic deposits. PNB shares on the BSE closed at `174.55 on Tuesday, up 4.% from its previous close.