PNB’s Q1 profit jumps 231% to Rs 1,023 crore as provisions fall



State-owned (PNB) reported a net profit of Rs 1,023 crore in April-June, posting a 231 per cent jump in its profit as compared to the same period last year. Sequentially, net profit of the Delhi-based lender increased 74 per cent from Rs 586 crore reported in Jan-March.


The bank’s net interest income (NII) increased 6.5 per cent year-on-year to Rs 7,226 crore during the quarter on a standalone basis. NII is difference between interest earned by a bank through lending and interest paid to depositors. Global net interest margin for the bank improved by 23 basis points to 2.73 per cent during the quarter as compared to 2.50 per cent in the same quarter last year.





The reduction in provisions for bad loans and asset quality stability may have aided the lender’s earnings. Although the lender’s provisions remained almost flat at Rs 4,678 crore, provisions for non-performing assets (NPAs) dropped 32 per cent year-on-year to Rs 3,248 crore. The bank’s gross non-performing assets increased to 14.33 per cent as compared to 14.11 per cent in the year ago period. In Jan-March, the bank’s gross NPAs stood at 14.12 per cent. Net NPAs of the state-owned lender were 5.84 per cent in the April-June quarter as compared to 5.73 per cent in Jan-March and 5.39 per cent in April-June 2020. The bank’s total recovery including cash recovery and account upgradation during the quarter improved to Rs 8,270 crore, the bank said.


The bank’s provision coverage ratio stands at 80.26 per cent as on June 30, 2021. Its capital to risk weighted asset ratio (CRAR) improved to 15.19 per cent in June 2021 from 12.63 per cent in June 2020.

The lender has also said that the situation due to Covid-19 pandemic continues to be uncertain, and is being evaluated continuously. “The extent to which the Covid-19 pandemic will impact PNB’s results will depend on future developments, which are highly uncertain including among other things, the success of vaccination drive,” it said.


The major challenges, for the bank, would arise from eroding cash flows and extended working capital cycles, it said, adding that “the bank is gearing itself on all the fronts to meet these challenges.”

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