PNB Q3 net profit falls 44% to Rs 629 crore weighed by higher provisions | Markets News

New Delhi: Punjab National Bank (PNB) on Monday reported a 44 percent decline in standalone net profit at Rs 629 crore in the third quarter ended December due to higher provisions for bad loans. The state-owned bank had earned a net profit of Rs 1,127 crore in the year-ago period. However, total income during October-December 2022 increased to Rs 25,722 crore as against Rs 22,026 crore in the year-ago period, PNB said in a regulatory filing.

During the quarter, the net interest income (NII) grew by 17.6 percent to Rs 9,179 crore while operating profit increased by 12.6 percent to Rs 5,716 crore on a YoY basis, PNB managing director Atul Kumar Goel said. (Also Read: Best Girl Child Investment Plans 2023: THESE are 5 Schemes to Consider in India)

However, provisions for bad loans increased to Rs 3,908 crore during the quarter as against Rs 3,654 crore a year ago, he said, adding, this led to an increase in Provision Coverage Ratio (PCR) to 85.17 percent in December 2022 from 81.85 percent in December 2021. (Also Read: Samsung’s Latest Gadget or Rin Detergent Bar? This Viral Picture Leaves Netizens in Split)

Secondly, he said, provision for wage revision and earmarking of performance-linked incentives of Rs 79 crore was also made during the quarter. On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 9.76 percent as compared to 12.88 percent at the end of the third quarter of the previous fiscal.

At the same time, net NPAs eased to 3.30 percent as against 4.90 percent in the same period a year ago. The capital adequacy ratio rose to 15.15 percent in the December quarter as against 14.91 percent.

Asked about further raising of capital, Goel said the bank has the board approval for raising Rs 12,000 crore from Tier I and Tier II bonds. Of this, he said, the bank plan to raise Rs 1,000 to 1,500 crore during the quarter depending on market condition and interest rate from AT1 bonds.

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