PNB tanks over 6%, hits 52-week low post Q1 results

NEW DELHI: Shares of Punjab National Bank ( PNB) plunged over 6 per cent to hit its 52-week low of Rs 585.95 in trade on Friday, after the public sector bank reported a net profit of Rs 1275.32 crore for the quarter ended June 30, 2013 supported by treasury gains and lower provisions.

The stock finally closed 5.15 per cent down at Rs 596. It has hit a low of Rs 584.90 and a high of Rs 632 in trade today.

Net profit of India's leading public sector bank stood at Rs 1245.67 crore for the quarter ended June 30, 2012.

Analysts on an average had estimated the banking major to report a net profit of Rs 1200 crore and a net interest income of Rs 3790 cr for the April-June quarter, according to ET Now estimates.

Total Income from operations increased from Rs 11721.97 crore for the quarter ended June 30, 2012 as compared to Rs. 11746.59 crore reported for the quarter ended June 30, 2013.

However, the results were largely inline with estimates, asset quality stress might not bode well for the stock in near term, say analysts.

Gross NPA have increased by a little over 12 per cent to Rs 1625 crore on QoQ basis. The gross NPA ratio optically seems very high as the advances growth has just been at about 3 per cent.

Gross non-performing ratio (NPA) ratio came at 4.84 per cent for the quarter ended June 30 as compared to 4.27 per cent reported in the previous quarter.

While net NPA ration came at 2.98 per cent for the quarter ended June 30 as compared to 2.35 per cent reported in the previous quarter.

Provision cover came at 54.6 per cent for the quarter ended June 30 as compared to 58.8 per cent reported in the previous quarter.