Punjab National Bank Turns Profitable In June Quarter, Shares Surge Over 5%

PNB reported net profit of Rs 1,018.63 crore compared with a loss of Rs 940 crore in the same quarter last year.

Punjab National Bank Turns Profitable In June Quarter, Shares Surge Over 5%

PNB's provisioning for bad loans declined sharply in June quarter.

Punjab National Bank (PNB) turned profitable in the April-June period on account of lower provisioning for bad loans. The Delhi-based state-run lender on Friday reported a net profit of Rs 1,018.63 crore in the quarter ended June 30. PNB had registered a net loss of Rs 940 crore in the corresponding three-month period a year ago. For the quarter ended March 31, its net loss had come in at Rs 4,749.64 crore. Punjab National Bank shares jumped as much as per cent 5.45 per cent after the earnings announcement by the lender. 

Punjab National Bank's net interest income, the difference between the interest earned and interest expended, declined 11.73 per cent to Rs 4,141.36 crore, from Rs 4,691.86 crore in the year-ago period.

Its provisioning for bad loans declined sharply in the June quarter. PNB provided a provisioning of Rs 2,147.13 crore in the April-June period, as against Rs 9,153.55 crore in the previous quarter, and Rs 4,981.99 crore in the quarter ended June 30, 2018, according to the regulatory filing.

However, PNB's asset quality deteriorated further. Its percentage of gross non-performing assets (NPA) came in at 16.49 per cent in the June quarter as against 15.50 per cent in the previous quarter.

Net non-performing assets (NPAs) rose to 7.17 per cent from 6.56 per cent in the previous quarter.

At 2:06 pm, PNB shares traded 2.42 per cent higher at Rs 67.65 apiece on the BSE, outperforming the benchmark Sensex index which was flat amid a volatile session.