PNB Q1 profit rises by 13% at Rs 1,246 cr
Punjab National Bank (PNB) today posted a 12.7 per cent rise in net profit to Rs 1,246 crore during the first quarter of the current fiscal due to growth in interest income.
By PTI | Updated:
New Delhi: State-owned Punjab National Bank (PNB) today posted a 12.7 per cent rise in net profit to Rs 1,246 crore during the first quarter of the current fiscal due to growth in interest income.
The bank had a net profit of Rs 1,105 crore during the April-June quarter of the previous fiscal.
Interest income during the quarter registered a healthy growth of 26.8 per cent at Rs 10,545 crore against Rs 8,315 crore in the first quarter of the previous fiscal, PNB Chairman and Managing Director K R Kamath said here.
However, the gross non-performance asset (NPA) as a proportion of advances went up significantly to 3.34 per cent against 2 per cent at the end of June last year. Net NPA also rose to 1.68 per cent during the period from 0.86 per cent in the same period of previous year.
In absolute terms, the gross NPA rose by 104 per cent to Rs 9,988.18 crore while net NPA increased by 135.1 per cent to Rs 4,917.04 crore at the end of June 2012 on year-on-year basis.
Asked about rising bad loans, Kamath said "while we are concerned about the NPA, PNB is focusing on recovery and NPA position would be better in the coming quarters".
Current phase of difficult economic conditions has been resulting in increased delinquencies, he said, adding, strong performance on NPA reduction during the quarter got outpaced by fresh slippages.
Asked if the worsening monsoon could put pressure on farm loan, he said, RBI has clearly defined norms for banks for agricultural credit in drought affected areas.
"If any of the area is affected by drought, there is very clearly defined scheme for restructuring of accounts of that particular area," he said.
Despite registering double digit growth in net profit, shares of the PNB closed at Rs 715.85, down 5.34 per cent on the BSE.
With regard to the total income, it grew by 24.6 per cent to Rs 11,711 crore during the first quarter against Rs 9,398.91 crore in the same period of 2011-12.
At the same time, the operating profit of the bank rose by 14.8 per cent to Rs 2841 crore as compared to Rs 2,474 crore in the same quarter a year ago, Kamath said.
On the Bulk deposits, he said, the bank has reduced it from 24 per cent to 22.16 per cent at the end of June 2012.
As per the advise of the Finance Ministry, the bank will bring down its bulk deposit to 15 per cent of the total deposit by end of March 2013, he added.
Asked if PNB will start its operation in Pakistan, he said this is subject to various approvals including from the respective regulators.
Total business crossed Rs 6.73 lakh crore at the end of the quarter, he said, adding, this is higher by 19.90 per cent.
The bank had a net profit of Rs 1,105 crore during the April-June quarter of the previous fiscal.
Interest income during the quarter registered a healthy growth of 26.8 per cent at Rs 10,545 crore against Rs 8,315 crore in the first quarter of the previous fiscal, PNB Chairman and Managing Director K R Kamath said here.
However, the gross non-performance asset (NPA) as a proportion of advances went up significantly to 3.34 per cent against 2 per cent at the end of June last year. Net NPA also rose to 1.68 per cent during the period from 0.86 per cent in the same period of previous year.
In absolute terms, the gross NPA rose by 104 per cent to Rs 9,988.18 crore while net NPA increased by 135.1 per cent to Rs 4,917.04 crore at the end of June 2012 on year-on-year basis.
Asked about rising bad loans, Kamath said "while we are concerned about the NPA, PNB is focusing on recovery and NPA position would be better in the coming quarters".
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Current phase of difficult economic conditions has been resulting in increased delinquencies, he said, adding, strong performance on NPA reduction during the quarter got outpaced by fresh slippages.
Asked if the worsening monsoon could put pressure on farm loan, he said, RBI has clearly defined norms for banks for agricultural credit in drought affected areas.
"If any of the area is affected by drought, there is very clearly defined scheme for restructuring of accounts of that particular area," he said.
Despite registering double digit growth in net profit, shares of the PNB closed at Rs 715.85, down 5.34 per cent on the BSE.
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With regard to the total income, it grew by 24.6 per cent to Rs 11,711 crore during the first quarter against Rs 9,398.91 crore in the same period of 2011-12.
At the same time, the operating profit of the bank rose by 14.8 per cent to Rs 2841 crore as compared to Rs 2,474 crore in the same quarter a year ago, Kamath said.
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On the Bulk deposits, he said, the bank has reduced it from 24 per cent to 22.16 per cent at the end of June 2012.
As per the advise of the Finance Ministry, the bank will bring down its bulk deposit to 15 per cent of the total deposit by end of March 2013, he added.
Asked if PNB will start its operation in Pakistan, he said this is subject to various approvals including from the respective regulators.
Total business crossed Rs 6.73 lakh crore at the end of the quarter, he said, adding, this is higher by 19.90 per cent.
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