PNB Q2 net rises over fourfold to ₹1,756 crore

PNB reports 4x rise in Q2 net profit to ₹1,756 cr; NII up 20%, NPA ratio down 233 bps. Operating profit grew 11.67%, NIM improved 11 bps, gross NPA ratio 6.96%, net NPA 1.47%, provision coverage 91.91%. Global business up 11.26%, deposits 9.75%, advances 13.43%. Retail loans up 40.42%, housing 13.7%, vehicles 28.3%, personal 39%. Gross NPAs ₹65,563 cr, net NPAs ₹13,114 cr. Provision coverage ratio up 1372 bps to 80%, slippage ratio down 248 bps to 0.86%.

Punjab National Bank reported second-quarter standalone net profit surged more than fourfold to ₹1,756 crore year-on-year on better asset quality and reduction in non performing assets (NPA).

Operating profit grew 11.67% to ₹6,216 crore. There was a 20% increase in net interest income (NII) to ₹9,923 crore. 

The public-sector lender said global net interest margin (NIM) improved by 11 basis points (bps) to 3.11%. Gross NPA ratio improved by 352 bps YoY to 6.96%.  Net NPA ratio improved by 233 bps YoY to 1.47% while the provision coverage ratio improved by 795 bps YoY to 91.91%.

The bank said its global business increased by 11.26% YoY to ₹22,51,631 crore. Global deposits grew by 9.75% to ₹13,09,910 crore and global advances grew by 13.43% YoY to ₹9,41,721 crore.  During the quarter, the bank’s retail loan portfolio grew 16.5% YoY to ₹1,47,247 crore. Within this category housing loan increased by 13.7% YoY to ₹87,430 crore, vehicles loans increased 28.3% to ₹18,010 crore and personal loans increased by 39% to ₹19,868 crore. 

Total retail loans increased by 40.42% YoY to ₹2,18,230 crore, the bank said in a filing. Gross NPAs were at ₹65,563 crore, a decline of ₹21,472 crore from the year ago period. Net NPAs were at ₹13,114 crore as compared with ₹29,348 crore a year ago, a decline of ₹16,234 crore.  Provision coverage ratio improved by 1372 bps YoY to 80% from 66.28%. Slippage ratio improved YoY by 248 bps to 0.86% from 3.34% a year ago.