Shares of Punjab National Bank (PNB) has dipped over 5% at Rs 516 on BSE after net profit of the state-owned bank has been more than halved at Rs 505 crore during the quarter ended September 30, 2013 (Q2) due to higher provisioning for bad loans.
The bank had reported profit of Rs 1,066 crore in a year ago quarter. The bank set aside Rs 1,898 crore towards bad loans against Rs 1,074 crore in the previous year quarter.
PNB's gross non-performing assets (NPAs), which represents portion of bad loans, stood at Rs 16,526 crore at the end of September, up from Rs 14,024 crore in the year ago period.
The gross NPA as a percentage of total loan rose to 5.14% during the quarter, from 4.66% in the year ago period, while net NPA increased to 3.07% from 2.69%, PNB said in a statement.
The bank’s Net interest income however rose 10.9% to Rs 4,016 crore.
The stock opened at Rs 546 and touched a high of Rs 550 on BSE before announcement of Q2 results.
The bank had reported profit of Rs 1,066 crore in a year ago quarter. The bank set aside Rs 1,898 crore towards bad loans against Rs 1,074 crore in the previous year quarter.
PNB's gross non-performing assets (NPAs), which represents portion of bad loans, stood at Rs 16,526 crore at the end of September, up from Rs 14,024 crore in the year ago period.
The gross NPA as a percentage of total loan rose to 5.14% during the quarter, from 4.66% in the year ago period, while net NPA increased to 3.07% from 2.69%, PNB said in a statement.
The bank’s Net interest income however rose 10.9% to Rs 4,016 crore.
The stock opened at Rs 546 and touched a high of Rs 550 on BSE before announcement of Q2 results.
