PNB net declines 49%, asset quality improves

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New Delhi | Updated: July 29, 2015 4:55:07 AM

Punjab National Bank (PNB) posted a 49% fall in net profit to R721 crore in the June quarter on higher provisioning.

Punjab National Bank (PNB) posted a 49% fall in net profit to R721 crore in the June quarter on higher provisioning.

The lender reported a net profit of R1,405 crore in the June quarter last year and R307 crore in the Q4 of FY15. The PNB stock, however, rose on Tuesday owing to better asset quality than in Q4 of FY15. The PNB scrip closed 4.95% higher at R142, after jumping as much as 6.7% during the day.

Provisions and contingencies almost doubled to R1,811 crore in Q1 over the same quarter last year. However, it was better than R3,834 crore in Q4 of FY15.

Gross non-performing assets (NPAs) rose 6.47% of the total advances (or R25,397 crore) in the June quarter, up from 5.48% (or R19,603 crore) in the same period last year, but better than 6.55% (or R25,695 crore) in Q4FY15. Net NPAs jumped 4.05% (or R15,394 crore), up from 3.02% (orRRs 10,464 crore) in Q1FY14, but marginally better than 4.06% (or R15,396 crore) in Q4FY15. NPA coverage ratio was 59.32% (against 60% in Q1FY15 and 58.21% in Q4FY15).

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Net interest income — the excess of interest earned over interest expended — fell 6.3% to R4,102 crore from R4,380 crore during the same period last year.

Operating Profit for Q1FY16 stood at R3,132 crore against R3,125 crore in Q1 FY15, the bank said, adding that total income during Q1FY16 amounted to R13,432 crore (up 4.7% over R12,825 crore in Q1FY15).

Though the bank managed to recover R1,143 crore in the June quarter (up from R749 crore in the June quarter last year), there were fresh slippages of R2,802 crore (from R2,655 crore in in the same period last year). The loan writeoff rose to R1,323 crore in June 2015 from R1,221 crore in June 2014.

PNB identifies 400 wilful defaulters; to sell Rs 3,000-cr NPAs

Saddled with bad loans, PNB on Tuesday said it has reported to RBI 400 ‘wilful defaulters’, and plans to sell NPAs worth up to R3,000 crore to ARCs in the current fiscal. “400 accounts are there (wilful defaulters) which we have reported to RBI so that it (list) can updated on website of RBI,” PNB ED (with additional charge of MD & CEO) Gauri Shankar said.

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