PNB records 10.2% net growth, NPAs a worry
"The area of NPA continues to engage our full attention. We have adopted a consolidation policy... next quarter NPA number should be quite better," said PNB CMD KR Kamath.
By ET Bureau | Updated:
NEW DELHI: Delhi-based Punjab National Bank ( PNB) on Friday reported 10.2% growth in net profit to Rs 1,405 crore for the April-June quarter of 2014-15, helped by a rise in interest income.
The bad loans, however, registered an increase with gross non-performance asset (NPA) as a proportion of advances went up significantly to 5.28 % against 4.84% at the end of June last year. Net NPA also rose to 3.02% during the period from 2.98% in the same period previous year.The bank’s share closed at 924, down 0.51% on the Bombay Stock Exchange ( BSE).
Punjab National Bank had posted a net profit of Rs 1,275 crore during the April-June quarter of the previous fiscal.Total income rose to Rs 12,825.13 crore from Rs 11,747 crore in the same quarter a year ago. Capital adequacy of the bank at the end of June 2014, as per Basel-III norms, was 11.52%. "The area of NPA continues to engage our full attention. We have adopted a consolidation policy... next quarter NPA number should be quite better," said PNB Chairman and Managing Director KR Kamath.
In absolute terms, the gross NPA rose by 30% to Rs 19,603 crore while net NPA increased by 15% to Rs 10,464 crore at the end of June 2014 on a year-on-year basis.On credit and deposit growth in the current fiscal, Kamath said it should be between 15-16%.
The bad loans, however, registered an increase with gross non-performance asset (NPA) as a proportion of advances went up significantly to 5.28 % against 4.84% at the end of June last year. Net NPA also rose to 3.02% during the period from 2.98% in the same period previous year.The bank’s share closed at 924, down 0.51% on the Bombay Stock Exchange ( BSE).
Punjab National Bank had posted a net profit of Rs 1,275 crore during the April-June quarter of the previous fiscal.Total income rose to Rs 12,825.13 crore from Rs 11,747 crore in the same quarter a year ago. Capital adequacy of the bank at the end of June 2014, as per Basel-III norms, was 11.52%. "The area of NPA continues to engage our full attention. We have adopted a consolidation policy... next quarter NPA number should be quite better," said PNB Chairman and Managing Director KR Kamath.
In absolute terms, the gross NPA rose by 30% to Rs 19,603 crore while net NPA increased by 15% to Rs 10,464 crore at the end of June 2014 on a year-on-year basis.On credit and deposit growth in the current fiscal, Kamath said it should be between 15-16%.
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