PNB Q2 profit down 11% at Rs549 crore as bad loans rise
- Govt proposes special courts to fast track criminal cases against politicians
- Siddaramaiah to begin 1-month Karnataka tour today with eye on 2018 assembly elections
- Crack found in bullet train in first ‘serious incident’ for Japan
- US has elevated its relationship with India, says Rex Tillerson
- Democrat Doug Jones wins Alabama Senate elections in stunning upset for Republicans
New Delhi: State-owned lender Punjab National Bank on Saturday reported a net profit of Rs549 crore in the second quarter of the current fiscal, a fall of 11% from the Rs621 crore profit recorded in the corresponding year ago period.
Asset quality pressures persisted in the quarter with gross non performing assets (NPA) zooming to 13.63% from 6.36% in the year ago period. Net NPAs also rose to 9.10% in the September ended quarter as against 3.99%.
However, both on terms of absolute numbers and percentages, the asset quality of the bank has improved when compared to the immediate preceding quarter. The bank had reported a gross NPA of 13.75% and a net NPA of 9.16% in the quarter ended June.
Indian banks have reported huge losses and surge in bad debts in the last couple of quarters after the Reserve Bank of India (RBI) asked banks to recognize more loans as non performing and set aside more funds as provisions after an asset quality review. State run banks that have reported their results so far this quarter continue to face asset quality pressures that is impacting their profitability.
Total provisions made by the bank in the September ended quarter rose to Rs2,533 crore from Rs1,882 crore in the same period last year. Of this, provision for NPAs also rose to Rs2,217 crore from Rs2,031 crore.
Net interest income also declined 10% to Rs3,880 crore from Rs4,322 crore. Other income, however, rose 76% to Rs2,388 crore from Rs1,357 crore.