PNB Q2 net profit up 2.2% at Rs 561 cr

Source: The Hitavada      Date: 04 Nov 2017 11:16:09


NEW DELHI,

Nov 3,

(PTI),

PUNJAB National Bank registered a marginal increase of 2.2 per cent in net profit to Rs 561 crore for the September quarter of the current fiscal as it trimmed bad loans and contained slippages. It had a net profit of Rs 549 crore in the July-September quarter of last fiscal 2016-17. The bank’s gross bad loans or non-performing assets (NPAs) as a proportion of gross advances came down to 13.31 per cent (Rs 57,630.11 crore) at the end of September, from 13.63 per cent (Rs 56,465.63 crore) a year ago.

“The gross NPAs, if you have seen the trend in the industry, almost every bank has shown increase in gross NPAs. But our bank contained it and we are below the March level. “Our fresh slippages have considerably gone down by more than Rs 3,000 crore during this quarter,” PNB Managing Director and Chief Executive Officer Sunil Mehta told reporters.

The fresh slippages in September last year were over Rs 11,000 crore, but now they are a little over Rs 8,000 crore, he said. The net NPAs also came down to 8.44 per cent of the net advances by September-end this year, from against 9.10 per cent a year ago. In absolute terms, the net NPAs stood at Rs 34,570.15 crore, compared with Rs 35,722.32 crore.

Shares rise over 5 per cent:

Shares of Punjab National Bank on Friday rose by over five per cent after the company reported an increase of 2.2 per cent in net profit for the second quarter of the current fiscal. The stock went up 5.07 per cent to end at Rs 207.30 on the BSE. During the day, it gained 7.42 per cent to Rs 211.95. On the NSE, the bank’s shares rose by 5.24 per cent to close at Rs 207.80.