PNB Q2 profit rises 2% at Rs561 crore
New Delhi: State-owned Punjab National Bank (PNB) on Friday said September quarter net profit rose just 2% to Rs560.6 crore from a year ago as bad-loan provision increased.
The profit came on a 4% increase in interest and non-interest income combined to Rs14,205 crore.
PNB set aside Rs2,694 crore in the quarter to cover the risk of default on non-performing assets, an increase from Rs1,638 crore a year ago.
The share of bad loans in total advances declined to 13.31% as of 30 September from 13.63% at the end of the same month a year ago.
Many state-owned banks are weighed down by bad loans, crimping their ability to extend credit to boost economic growth. The government last month announced a Rs2.11 trillion plan to recapitalise state-owned banks