PNB’s Q2 net profit rises 22%

PNB’s Q2 net profit rises 22%

India’s second-largest state-run lender, Punjab National Bank (PNB), on Monday posted a 22% increase in standalone net profit to Rs 621 crore for the July-September quarter against Rs 507 crore seen in the year-ago period.
The performance was a solid 101% quarterly increase from the plunge in net profits to Rs 308 crore reported during the first quarter of the fiscal.

PNB’s net interest income rose to Rs 8,393 crore for the quarter ended September, posting a healthy 29% growth over the year and a 24% increase over the previous quarter.
Similarly, the net interest margin improved to 3.21% as against 2.58% in the second quarter of the last fiscal.
Total income stood at Rs 23,439 crore as of September-end, up by a substantial 51% from last year’s Rs 15,557 crore. However, the figure was down 3.5% compared to the first quarter of FY21.

It’s asset quality improved as gross non-performing assets (NPAs) saw a decline to Rs 93,314 crore or 13.43% of total advances at Rs 7.17 lakh crore by the end of September, down from 16.76% a year ago.
While net NPAs also fell to 4.75% against 7.56% last year in the second quarter, provisioning for bad loans increased to Rs 3,811 crore as of September 30 over the Rs 3,253 crore in July-September 2019.
Capital adequacy ratio of the bank stood at 12.84% for the second quarter, a marginal improvement from 12.63% at the end of June but lower than the 14.07% posted in the second quarter of FY20.

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