Punjab National Bank is trading lower by 2% at Rs 740, declining almost 5% from day’s high after the bank said the gross non-performing assets (NPA) as a proportion of advances in June quarter went up to 3.34% from 2% a year ago.
In absolute terms, the gross NPA stood at Rs 9,988 crore compared to Rs 4,894 crore in the same quarter previous year. Net NPAs also increased to 1.68% of at the advances to Rs 4,917 crore. Meanwhile, the public-sector bank has reported a lower-than-expected 13% year-on-year (yoy) net profit at Rs 1,246 crore for the quarter ended June 2012. Analysts, on an average, expected net profit of Rs 1,251 crore from the public sector bank for the quarter.
Net interest income (difference between interest earned and interest expended) grew 19% at Rs 3,695 crore on yoy basis.
The stock opened at Rs 770 and hit a high of Rs 778 on the NSE. A combined 1.69 million shares have changed hands on the counter till noon deals.