Punjab National Bank (PNB) on Friday posted 11.57 decline in its net profit at Rs 1,066 crore for the quarter ended September, compared with Rs 1,205 crore in the same period last year. The drop came on account of an increase in provisioning towards non-performing assets (NPAs).
“Increase in provisioning towards NPAs by 257 per cent resulted in decline in net profit for the quarter,” Chairman K R Kamath told a press conference. He said NPAs were an area of concern and the bank had consciously decided not to write off the debt.
During July-September, provisioning towards NPAs stood at Rs 1,140 crore, against Rs 319 crore in the same period of the previous financial year. Net NPAs of the Delhi-based bank increased from Rs 2,088 crore at the end of September 2011 to Rs 7,933 crore at the end of September 2012. As percentage of total assets, net NPAs were 2.7 per cent this year against Rs 0.84 per cent last year.
| POOR SHOW Quarter ended September (standalone) (in Rs cr) | ||
| Sept ’12 | % chg* | |
| Interest earned | 10,421.11 | 16.41 |
| Other income | 905.38 | 1.86 |
| Total income | 11,326.49 | 15.10 |
| Interest expended | 6,771.74 | 23.14 |
| NII | 3,649.37 | 5.70 |
| Net profit | 1,065.58 | -11.57 |
| *change over y-o-y; Data compiled by BS Research Bureau Source: Capitaline | ||
‘It is a reflection of what is happening in the economy. It is difficult to say whether the worst is over. It all depends on how economy behaves in next three to six months,” Kamath said.
On the bank’s capital raising plans, he said, “At the end of the year, we see our capital adequacy ratio should be 12 per cent plus. We do not have any capital raising plans for current financial year.”
Total income rose 15.1 per cent to Rs 11,326 crore on the back of 16.4 per cent growth in interest income. Net interest income improved 11.8 per cent from Rs 6,568 crore to Rs 7,345 crore.
Net interest margin stood at 3.5 per cent. Restructured loan account stood at Rs 27,850 crore, of which 11 per cent are NPAs.
Operating profit was at Rs 2,533 crore, marginally higher than Rs 2,528 crore in the year-ago period. Total business rose to Rs 6,95,534 crore against Rs 5,90,803 crore in September 2011, showing a growth of 17.7 per cent.
Deposits amounted to Rs 4,00,747 crore compared with Rs 3,41,783 crore in September 2011, exhibiting growth of 17.3 per cent. Net advances at Rs 2,94,787 crore grew 18.4 per cent from Rs 2,49,020 crore.
