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Shares of Punjab National Bank (PNB) tumbled over 11% ti 29 apiece on the BSE, hitting a 52-week low in Thursday's session after the lender reported a 66% decline in standalone net profit at 201 crore for the quarter ended March 2022, due to a higher amount parked towards provisioning, even as the NPA levels declined.

The lender's net interest income (NII), difference between interest earned and interest expended, rose 5% to 7,305 crore for the quarter under review.

The asset quality showed improvement, with the gross non-performing assets (GNPAs) falling to 11.78% of the gross advances as of March 2022, from 14.12% a year ago. Net NPAs or bad loans too declined to 4.8% from 5.73%. However, the lender kept a higher provision for bad loans and contingencies for Q4 FY22 at 4,851 crore against Rs 3,540 crore earlier. 

PNB said it is holding total provision of 8,384 crore (aggregate provision of RBI list 1 and list 2 accounts) as on March 31, 2022 (99.78% of gross NPA advances). In FY21, it was 8,374 crore.

The bank raised Basel III compliant AT1 bonds and tier ll bonds of 3,971 crore and 1,919 crore, respectively, in FY22. Provisioning coverage ratio as on March 31, 2022 works out to 81.60% against 80.14% as on March 31, 2021.

The board of directors has recommended dividend of Re 0.64 per equity share (i.e. 32%) of face value of 2 each for 2021-22, subject to shareholders' approval at the ensuing annual general meeting (AGM).

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