Punjab National Bank profit jumps 4 times to Rs 1,255 crore in Q1

State-run lender Punjab National Bank on Wednesday, July 26, reported net profit of Rs 1,255 crore in first quarter of current financial year, marking an increase of four times from Rs 308 crore during the same period last year.

Punjab National Bank net interest income and asset quality

Punjab National Bank's net interest income or difference between interest earned and interest expended rose 26 per cent to Rs 9,504.25 crore compared with Rs 7,542.84 crore in the year ago period. 

The gross non performing assets (NPAs) declined to 7.73 per cent of the gross advances by June 2023 from 11.2 per cent a year ago.

The net NPA too declined to 1.98 per cent as against 4.26 per cent in the same period of the previous year.

As a result, provisions for bad loans came down to Rs 4,374 crore in April-June FY24 as against Rs 4,814 crore in the year-ago period.

On a consolidated basis, the bank reported a net profit of Rs 1,342 crore in the quarter ended in June as against Rs 282 crore a year ago.

The consolidated financial result of the bank comprises five subsidiaries and 15 associates.

The capital adequacy ratio of the bank improved to 15.54 per cent at the end of June compared to 14.62 per cent in the year-ago period.

PNB consolidated earnings

On a consolidated basis, Punjab National Bank's net profit came in at Rs 1,342 crore in June quarter as against Rs 281.73 crore during the same period last year.  

"The consolidated Unaudited Financial Results includes the interim financial results of 3 subsidiaries which have not been reviewed by their auditors, whose interim financial results reflect total assets of Rs 10,746.85 crore as at June 30, 2023, revenue of Rs 172.86 crore for the quarter ended June 30, 2023 as considered in the consolidated financial results," Punjab National Bank said in a regulatory filing.

Share of Punjab National Bank rose 3.44 per cent to hit an intraday high of Rs 62.77 after it reported June quarter earnings.