Pulled down by higher bad loan provisioning, country’s second largest public sector lender Punjab National Bank (PNB)’s net profit during the June quarter almost halved to Rs 721 crore. Its Gross Non performing assets over the same periods fell to 6.47 percent versus 6.55 percent.
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On an absolute basis, PNB’s gross nonperforming assets decreased to Rs 25,397 crore against Rs 25,695 crore sequentially. If the trend continues and given the valuation, the stock will do well going ahead.
Total business for the April-June 2015 quarter grew to Rs 4,07,026 crore, up 1.96 %, from Rs 3,99,188 crore during the year-ago period.
Its net interest income (NII) which is the excess of interest earned over interest expended came in at Rs 4,103 crore, against estimates of Rs 4,010 crore.
Net profit fell to 5.19 billion rupees ($81 million) during its fiscal first quarter to June 30, from 6.64 billion rupees reported a year earlier, the Mumbai-based lender said.
Provisions, including for bad loans, almost doubled from a year earlier to Rs 1,811 crore.
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Shares of Union Bank were trading at Rs 158.85, up 3.05% in the noon trade on BSE.
