PNB Beats ICICI, HDFC In Profit Growth: Earned Rs 12.5 Crore/Day In Last 90 Days

PNB Beats ICICI, HDFC In Profit Growth: Earned Rs 12.5 Crore/Day In Last 90 Days
PNB Beats ICICI, HDFC In Profit Growth: Earned Rs 12.5 Crore/Day In Last 90 Days

As per the latest report on Thursday, the State-owned Punjab National Bank reported a 123 percent year-on-year (YoY) jump in net profit at Rs 1,126 crore for the third quarter which ended December 31, 2021.

PNB Growth In Portfolio

Prior to this, the company posted a net profit of Rs 506 crore during the same time, in the third quarter last year. 

Interestingly, the third-quarter results have beaten the prediction from NBC-TV18 Polls, which had expected a profit of Rs 1,033.8 crore for the quarter under review.

Although, PNB said in a regulatory filing that the total income during the October-December quarter 2021 has declined to Rs 22,026.02 crore as against Rs 23,298.53 crore in the year-ago period.

On the other hand, the Net interest income (NII) of the lender grew by 6.5 percent YoY to Rs 7,803.2 crore compared to Rs 8,345.8 crore in the same period in the previous fiscal year.

Reduction in NPA

Coming to Gross NPA, it stood at 12.88 percent in the December quarter against 13.63 percent in the September quarter. 

While Net NPA came at 4.9 percent against 5.49 percent quarter-on-quarter.

Here, NPA is a non-performing loan is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full.

So, the reduction in NPA is also a positive sign for the concerned bank.

Although the results were announced after the closing of the market hours on Thursday, still shares of Punjab National Bank ended at Rs 41.10, up by Rs 1.70, or 4.31 percent on the BSE.

COVID-19 pandemic Affecting Economy

Further, the report consolidated financial results of the Group include financial results of five subsidiaries and 15 associates. 

PNB said the situation continues to be uncertain due to new coronavirus variants.

So, the state-owned lender is evaluating the situation on an ongoing basis.

Adding that  “The extent to which the COVID-19 pandemic will impact the bank’s results will depend on future developments. The major identified challenges for the bank would arise from eroding cash flows and extended working capital cycles. The bank is gearing itself on all the fronts to meet these challenges,”.

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