Punjab National Bank(PNB)'s net profit for the quarter ended 30 June, 2021, zoomed 232% to Rs.1,023 crore, it said on Monday. The lender had posted a net profit of Rs.308 crore in the year-ago period.
The lender's Net Internet Income (NII) rose 6.5% to Rs.7,226 crore as against Rs.6,782 crore in the year-ago period.PNB's gross NPA marginally rose to 14.33% from 14.12% QoQ while the net NPA came at 5.85% as against 5.73% in the previous quarter (Q4F21).
The operating profit of the bank increased during the quarter to Rs.6,098.65 crore from Rs.5,280 crore. Its operating expenses during the quarter came down to Rs.4,722 crore from Rs.5,156 crore in the year-ago period. The total recovery, including cash recovery and up-gradation, during Q1FY22 improved to Rs.8,270 crore, PNB said.
The lender said it has availed dispensation for deferment of provision of Rs.392.69 crore in respect of frauds, as per RBI norms. Accordingly, an amount of Rs.98.17 crore has been charged to the profit and loss account and Rs.294.52 crore has been deferred to subsequent quarters. "Further, out of the amount of Rs.1,013.10 crore, which was debited to other reserve in Q4FY21, an amount of Rs.606.14 crore has been charged to profit and loss account and remaining Rs.406.96 crore will be charged to profit and loss account in subsequent quarters," it said.
On a consolidated basis, PNB reported a net profit of Rs.1,080.30 crore in the quarter ended June 2021, as against Rs.475.19 crore a year ago. The consolidated financial result of the bank comprises five subsidiaries and 15 associates. The capital adequacy ratio of the bank was at 15.19 per cent by June quarter-end, compared to 12.63 per cent a year ago. Provision coverage ratio works out to 80.26 per cent by June 30, 2021, it said.
PNB said it is holding a total provision of Rs.8,397.97 crore, as per RBI list-1 and list-2, with regard to accounts admitted under Insolvency & Bankruptcy Code (IBC) as of June 30, 2021. This provisioning is 100 per cent of the gross NPA advances, it added.
On the bank's quarterly performance amid Covid-19, the lender stated, "The extent to which the COVID-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain including among other things, the success of vaccination drive. 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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