Millennium Post

PNB achieves 2.5% rise in Q3 profit to Rs775 crore

PNB achieves 2.5% rise in Q3 profit to Rs775 crore
The country's second largest public sector bank by assets had reported net profit of Rs 755.41 crore for the October- December quarter of the 2013-14 financial year. Poor performance of the bank pulled its share price down by nearly 7 per cent to Rs 179.20 on the BSE after the numbers were announced. As far as PNB's asset quality is concerned, gross NPAs as a percentage to total advances rose to 5.97 per cent from 4.96 per cent in the same quarter a  year ago.

Its net NPAs went up to 3.82 per cent from 2.80 per cent at the end of December 2013, PNB said in a statement. Gross NPA in absolute terms rose to Rs 22,211.43 crore as compared to Rs 16,595.84 crore at the end of December 2013. However, total provisions, excluding for income tax, made during the third quarter of 2014-15 were Rs 1,467.77 crore as against Rs 1,590.04 crore in the year-ago period.

The total income increased to Rs 12,904.85 crore for the quarter ended December 31, 2014 from Rs 11,922.30 crore in the same quarter last fiscal. Operating profit of PNB remained flat at Rs 2,751 crore as against Rs 2,702 crore in the year-ago period. During the first three quarters of 2014-15, PNB has registered just 8.6 per cent growth in net profit to Rs 2,755 crore, compared to Rs 2,536 crore in the year-ago period. The bank's total income for the nine month period in the current fiscal is Rs 38,750 crore, compared to Rs 35,302 crore in the same period of the previous financial year.

Meanwhile, PNB shares tumbled over 8 per cent, wiping out Rs 2,760 crore from its market valuation on Tuesday, after the company posted a marginal 2.5 per cent increase in net profit for the third quarter ended December 31. Investors were also disappointed by the asset quality of Punjab National Bank.
PTI

PTI

Our contributor helps bringing the latest updates to you


Share it
Top