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  1. PNB Q3 net profit jumps four-fold to Rs 207 crore

PNB Q3 net profit jumps four-fold to Rs 207 crore

Public sector lender Punjab National Bank (PNB) on Tuesday reported that its net profit quadrupled on a year-on-year (y-o-y) basis to R207 crore in the December quarter of FY17.

By: | Mumbai | Published: February 8, 2017 5:25 AM
Speaking to a business news channel, PNB MD & CEO Usha Ananthasubramanian said that the bank should be able to move towards the 2.9% mark and needs to bring about a correction in the deposit rates as well. Speaking to a business news channel, PNB MD & CEO Usha Ananthasubramanian said that the bank should be able to move towards the 2.9% mark and needs to bring about a correction in the deposit rates as well.

Public sector lender Punjab National Bank (PNB) on Tuesday reported that its net profit quadrupled on a year-on-year (y-o-y) basis to R207 crore in the December quarter of FY17. The profit growth was aided by higher other income at R2,513 crore, up 50.3% y-o-y.

PNB’s operating profit rose 8.12% y-o-y to R3,155 crore in Q3. Its net interest income — the difference between interest earned and interest expended — stood at R3,731 crore, down 9.4% y-o-y and its net interest margin — a key measure of profitability stood 2.33%.

Speaking to a business news channel, PNB MD & CEO Usha Ananthasubramanian said that the bank should be able to move towards the 2.9% mark and needs to bring about a correction in the deposit rates as well. “I would say a small correction we could look for in the savings or in the term-tenures wherever we see a surge and where we do not need that kind of a deposit. We should be taking a call on that which would also help us because a lot of surge happens in the last quarter in terms of deposits as well,” she said.

Asset quality at PNB deteriorated in the December quarter with its gross non-performing assets (NPAs) as a percentage of total advances stood at 13.7%, up 7 bps sequentially. Its net NPAs stood at 9.09%, down 1 bps sequentially. PNB’s cash recoveries and upgradation in the December quarter stood at R2,413 crore and R1,534 crore respectively.

“We have been more or less in line with the guidance (of recoveries) given of R15,000 crore for three quarters and R20,000 crore for the year as a whole. So, that has been one redeeming feature for the bank that we have been more or less coming up to that,” Ananthasubramanian explained.

She added that up to January 31, the bank has recovered about R1,300-1,375 crore. “So, work is in progress even in demonetisation times because we could not have put in another whatever R3,974 crore of recovery, but for the recovery teams very close on the ground level,” she said.

PNB shares on the BSE closed at R151.8 on Tuesday, up 1.44% from its previous close.

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