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Informist, Monday, Oct. 28, 2024

 

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--PNB Jul-Sept net profit INR 43.03 bln 
--Analysts saw PNB Jul-Sept net profit INR 34.97 bln 
--PNB gross NPA ratio 4.48% as on Sept 30 vs 4.98% qtr ago 
--PNB Jul-Sept net profit INR 43.03 bln vs INR 17.56 bln year ago 
--PNB net NPA ratio 0.46% as on Sept 30 vs 0.60% qtr ago 
--PNB Basel III capital adequacy ratio 16.36% as on Sept 30 
--PNB Jul-Sept total income INR 344.47 bln vs INR 293.83 bln year ago 
--PNB Jul-Sept provisions INR 2.88 bln vs INR 34.44 bln year ago 
--PNB Jul-Sept NPA provisions INR 1.99 bln vs INR 30.19 bln year ago 
--PNB: Made floating provision of INR 3.5 bln in Jul-Sept 
--PNB: Held floating provision of INR 5.0 bln as on Sept 30 
--PNB provision coverage ratio 96.67% as on Sept 30 
--PNB Apr-Sept net profit INR 75.55 bln vs INR 30.12 bln year ago 
--PNB Apr-Sept total income INR 666.13 bln vs INR 579.62 bln year ago 

--PNB Jul-Sept net interest income INR 105.17 bln, up 6.0% on year 

--PNB Jul-Sept global net interest margin 2.92% 

--PNB global advances INR 10.62 tln as on Sept 30, up 12.8% on year 

--PNB global deposits INR 14.58 tln as on Sept 30, up 11.3% on year 

--PNB current, savings account ratio 39.31% as on Sept 30 

--PNB credit-deposit ratio 72.82% as on Sept 30 vs 71.89% year ago 

--PNB Jul-Sept credit cost 0.08% vs 1.31% year ago 

--PNB Jul-Sept fresh slippages INR 21.81 bln vs INR 17.55 bln quarter ago 

--PNB Jul-Sept recoveries, upgrades INR 29.15 bln vs INR 17.21 bln Apr-Jun 

--PNB Wrote off loans worth INR 29.46 bln Jul-Sept 

 

By Shubham Rana

 

NEW DELHI – Punjab National Bank’s net profit for the quarter ended September jumped over twofold, exceeding analyst expectations, as provisions continued to fall. The public sector lender's net profit rose 145.1% on year to INR 43.03 billion during Jul-Sept. Sequentially, the net profit was up 32.4%.

Analysts had estimated the bottom line to rise 99.1% on year to INR 34.97 billion during Jul-Sept because of falling provisions. Shares of the bank on Monday ended 3.1% higher at INR 98.64 on the National Stock Exchange. The bank's shares had risen to the day's high of INR 101.95 after the release of the financial results.

 

Provisions and contingencies declined 91.6% on year to INR 2.88 billion in Jul-Sept. Of the total provisions, those for non-performing assets fell 93.4% on year to INR 1.99 billion during the quarter ended September. The bank's provision coverage ratio was 96.67% as of Sept. 30 compared to 91.91% a year ago. The bank made floating provision of INR 3.5 billion in the reporting quarter, and held floating provision of INR 5.0 billion as of Sept. 30.

 

The bank's total income rose 17.2% on year to INR 344.47 billion in Jul-Sept and was up 7.1% on a sequential basis. The rise in total income was driven by a 51.0% on-year rise in other income. Other income rose 26.7% on quarter to INR 45.72 billion in Jul-Sept. Interest earned was up 13.4% on year and 4.6% on quarter at INR 298.75 billion in Jul-Sept. 

 

Total expenditure increased 19.1% on year to INR 275.94 billion in Jul-Sept, led by a 22.3% on-year rise in operating expenditure to INR 82.35 billion. Interest expended rose 17.8% on year to INR 193.58 billion in Jul-Sept. The bank reported an operating profit of INR 68.53 billion in Jul-Sept, up 10.3% on year. 

 

The Delhi-based bank's net profit for Apr-Sept rose to INR 75.55 billion from INR 30.12 billion a year ago. Total income in the first six months of the financial year rose to INR 666.13 billion from INR 579.62 billion in the corresponding period of the previous year.

 

On the asset quality front, the bank's gross non-performing asset ratio moderated to 4.48% as of Sept. 30 from 4.98% a quarter ago and 6.96% a year ago. The net non-performing asset ratio fell to 0.46% at the end of September from 0.60% a quarter ago and 1.47% a year ago. 

 

Credit cost declined 123 basis points on year to 0.08% in Jul-Sept. The slippage ratio rose to 0.89% in the reporting quarter from 0.86% a year ago. The bank reported fresh slippages of INR 21.81 billion in Jul-Sept compared to slippages of INR 17.55 billion in Apr-Jun. Cash recoveries and upgrades were INR 29.15 billion in Jul-Sept as against INR 17.21 billion in Apr-Jun. The bank also wrote off loans worth INR 29.46 billion in the quarter ended September. 

 

Net interest income--the difference between interest earned and expended--rose to INR 105.17 billion in Jul-Sept, up 6.0% on year. Analysts had expected the net interest income to rise to INR 107.94 billion in Jul-Sept. The net interest income was INR 104.76 billion in Apr-Jun.

 

The bank's global net interest margin during Jul-Sept was 2.92% compared to 3.07% in the previous quarter and 3.11% a year ago.

 

The Delhi-based lender reported robust loan growth during the quarter ended September. The bank's global advances grew 12.8% on year to INR 10.62 trillion as on Sept. 30. The share of retail, agriculture, as well as medium, small and micro-sized enterprises to the total advances was 55.8% as on Sept. 30, higher than 55.6% a year ago.

 

PNB's core retail advances rose 19.0% on year to INR 1.85 trillion as of Sept. 30, while agriculture advances to priority sectors were up 14.7% on year at INR 1.29 trillion. Loans to micro, small and medium enterprises rose 8.9% on year to INR 1.51 trillion as of Sept. 30, the bank said in an investor presentation.

 

Global deposits were up 11.3% on year to INR 14.58 trillion as on Sept. 30. The bank's current account savings account ratio was 39.31% as on Sept. 30. The bank's credit-deposit ratio rose to 72.82% as on Sept. 30 from 71.89% a year ago.  End

 

Edited by Tanima Banerjee

 

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