PNB net profit drops 70% YoY to Rs 308 crore in April-June quarter

Punjab National Bank’s (PNB) standalone net profit plunged 70 per cent year-on-year (YoY) to Rs 308.4 crore in April-June quarter as provisions for bad loans went up. Sequentially, net profit of the Delhi-based lender jumped 53 per cent from Rs 201.5 crore reported in January-March.

To be sure, the state-owned lender had reported a Rs 1,023 crore profit in April-June 2021 on account of healthy cash recovery and upgrade of Rs 8,270 crore. 

PNB’s total income during April-June 2022 was Rs 21,294 crore as against Rs 22,816 crore a year ago, the lender said in an exchange filing. The lender’s interest income during the quarter was Rs 18,757 crore as against Rs 18,929 crore reported last year. However, its net interest income showed an increase to Rs 7,543 crore in April-June from Rs 7,234 crore in the same quarter last year. 

The bank’s gross non-performing assets (NPAs) as a percentage of gross advances dropped to 11.27 per cent from 14.33 per cent a year ago. Gross NPAs in January-March 2022 were 11.78 per cent. Net NPAs stood at 4.28 per cent from 5.84 per cent a year ago and 4.8 per cent a quarter ago. 

However, the bank’s provisions for NPA increased to Rs 4,814 crore from Rs 3,248 crore reported in the same quarter last year.

The provision coverage ratio of the lender stood at 83.04 per cent as on June 30 as compared to 80.26 per cent a year ago. On a consolidated basis, the bank recorded a profit of Rs 304 crore in April-June as against a profit of Rs 1,080 crore reported in the same quarter a year ago.

The consolidated financial results of the group include financial results of five subsidiaries and 15 associates, it said.

PNB Housing

In its quarterly results, the lender’s arm PNB Housing Finance (PNBHFL) saw its net profit dip over 3 per cent year-on-year to Rs 235 crore in April-June. 

The mortgage lender’s net interest income declined 33 per cent year-on-year to Rs 370 crore on account of reduction in corporate book. Net Interest Margin for PNBHFL stood at 2.4 per cent against 3.2 per cent in the same quarter last year. 

The housing lender’s asset quality improved with gross non performing assets at 6.35 per cent as on June 30 as compared to 6.40 per cent last year and 8.12 per cent as on March 31, 2022. 

Net NPAs stood at 4.26 per cent of loan assets as on June 30 as compared to 5.06 per cent as on March 31, 2022.

“We continue to remain persistent towards improving its asset quality, which has led to a reduction in gross NPA by 23% QoQ to INR 3,639 crore in Q1FY23,” said Hardayal Prasad, managing director at PNBHFL.