Millennium Post

PNB Q3 profit jumps 4-fold to Rs 207 crore

tate-owned Punjab National Bank on Tuesday posted four-fold jump in net profit at Rs 207 crore for the December quarter of current fiscal on account of increase in treasury income and decline in cost of deposits.

The bank had reported net profit of Rs 51 crore in the corresponding quarter of last fiscal.

"Profit during the quarter was driven by decline in cost of deposit, recovery of bad loans and rise in treasury income," PNB Managing Director Usha Ananthasubramanian said while announcing third quarter numbers here.

The bank's asset quality, however, deteriorated further as gross non-performing assets (GNPAs) or bad loans hit 13.70 per cent of the gross advances during third quarter of current fiscal, 2016-17, as against 8.47 per cent a year ago.

Likewise, net NPAs rose to 9.09 per cent of net advances as of December quarter of 2016-17, from 5.86 per cent in the year-ago period.

Explaining the reason, Ananthasubramanian said the NPA ratio has increased because advances have not increased accordingly and basically the denominator effect.
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