PNB Q1 net profit goes up 12% to Rs343 crore on NPA decline
New Delhi: State-run Punjab National Bank (PNB) on Wednesday said June quarter net profit rose 12% from a year ago to Rs343.4 crore, due to lower provisions for bad loans.
Total income rose 7.3% to Rs14,468 crore from a year ago, while total expenditure rose 5.5% to Rs11,251 crore.
PNB provided Rs2,560 crore for non performing assets (NPA) in the first quarter of this fiscal, 19% lower than what it had provided for in the same period a year ago.
Gross NPAs as a share of advances declined to 13.66% in the first quarter of the current financial year from 13.75% a year ago.
Net NPA as a proportion of advances too declined to 8.67% from 9.16%. At the end of the first quarter, PNB had net NPAs of Rs34,573 crore. PNB had said in its 2016-17 annual report that it was making focussed efforts to improve asset quality and to enhance loan recovery.
“These efforts will continue to receive intense management attention in FY2018,” it had said.
PNB also informed the exchanges that its board approved raising Rs3,000 crore of capital by way of follow-on public offer, rights issue or by other means.
PNB’s shares closed 0.89% higher at Rs158.90 on BSE on Wednesday, while the benchmark Sensex index fell 0.30% to close at 32,476.74 points.