Public sector
lender Punjab National Bank has reported better-than-expected
growth of 2 percent for the quarter ended September 2017 and even its asset
quality improved over previous quarter.
Profit for the quarter
increased to Rs 560.6 crore, against Rs 549 crore in same quarter last fiscal.
Net interest income
during the quarter grew by 3.5 percent year-on-year to Rs 4,015.2 crore, with
total advances growth of 4.2 percent at Rs 4.1 lakh crore.
Gross non-performing
assets (NPA) as a percentage of gross advances were lower at 13.31 percent compared
with 13.66 percent in previous quarter and net NPA also declined to 8.4
percent, from 8.67 percent on sequential basis.
In absolute terms,
also gross NPA were lower at Rs 57,630 crore compared with Rs 57,721 crore and
net NPA declined to Rs 34,570 crore from Rs 34,573 crore on quarter-on-quarter
basis.
The bank said fresh
slippages for the quarter stood at Rs 8,449 crore, against Rs 6,649 crore in
previous quarter.
Numbers were ahead of
estimates. Profit was estimated at Rs 366 crore and net interest income at Rs
3,913.2 crore for the quarter, according to average of estimates of analysts
polled by CNBC-TV18.
Provisions and
contingencies for the quarter fell 6.4 percent sequentially to Rs 2,441 crore,
but increased 25 percent on year-on-year basis.Provision coverage
ratio improved to 59.23 percent in quarter ended September 2017, from 58.23
percent in June quarter.
Meanwhile, the board
of directors on Thursday has authorised the management of the bank to partially
sell its stake in PNB Housing Finance. PNB Housing Finance
will continue to be core associate of Punjab National Bank.
"Consequent upon
the exercise of call option by the Principal Group, board has approved to
offload its entire stake in Principal PNB Asset Management Company and Principal
Trustee Company to the Principal Group," the bank said.
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