PNB profit more than halves to Rs 306 cr in Q1

TIL Desk/Business/New Delhi-Having posted a record loss of Rs 5,367 crore in the earlier quarter, PNB today reported a 58 per cent decline in net profit to Rs 306 crore for April-June period of the current fiscal on account of rising bad loans. The bank had a net profit of Rs 721 crore during the corresponding period of the previous fiscal.

During the quarter, provision towards non-performing assets (NPAs) have jumped almost three-fold to Rs 3,620 crore from Rs 1,291 crore in the same period a year ago. The Gross NPAs rose significantly to 13.75 per at the end of June 2016, from 12.9 per cent in the year-ago period. The net NPAs too rose to 9.16 per cent against 8.61 per cent in June 2015.

In absolute terms, the gross NPAs of the bank more than doubled to Rs 56,654.09 crore from the year-ago levels. “NPA is Rs 300 crore over the March level…no body can say that we are done with NPA but we think that more or less tapering has happened,” Punjab National Bank (PNB) Managing Director Usha Ananthasubramanian told.