Millennium Post

Pre-Diwali delight: PNB Q2 net up 14%

State owned lender Punjab National Bank's net profit in the second quarter ended 30 September grew by 13.81 per cent to Rs 575.34 crore on robust growth in other income. The public sector bank had reported a net profit of Rs 505.49 crore in the corresponding (July-September) quarter of 2013-14.

'In the previous quarter, we had said that our growth rate will catch up with the growth rate of the industry and by and large we have caught up with the growth rate of the industry in this quarter.
'Other income showed a robust growth of Rs 1,558 crore (quarter ended September) as compared to Rs 899 crore of last year. All non-interest income component have performed well that contributed to 73 per cent growth in other income. 'We had good recovery in return of assets this year. We had recovery of Rs 483 crore on the return of assets,' PNB, Chairman and Managing Director, K R Kamath said. The total income of the bank rose by 11.93 per cent from a year ago to Rs 13,020.46 crore.

Net interest income rose by 3.38 per cent on the year to Rs 4,151.19 crore. However, provisions towards bad assets increased by 13.37 per cent to Rs 2, 300.69 crore during the quarter under review. The bank made an additional provisioning for wages by Rs 60 crore during the quarter.

'Every quarter we are making a provision of Rs 180 crore this year. In this quarter, we have made an additional provision of Rs 60 crore,' Kamath said.

The gross non performing assets or bad loans rose to 5.65 per cent during the quarter under review from 5.14 per cent in the same period a year ago.
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