The state-owned Punjab National Bank Ltd. after registering losses for three straight previous quarters reported a profit in the December ending quarter. Punjab National Bank reported a net profit of Rs 247 crores for quarter-ended December, posting an 8 per cent year-on-year rise according to the state-run lender’s exchange filing.
Sunil Mehta, Managing Director and Chief Executive Officer of the bank said, “Proud moment for PNB to be back in the black.” He added, “Despite the biggest turbulence ever faced in the industry, the bank had the capability to handle the situation.”
Net interest income or the bank’s core income increased 7 per cent to Rs 4,290 crore. The bank’s asset quality improved as its gross non-performing assets ratio declined from 17.16 per cent to 16.33 per cent sequentially. PNB net NPA ratio also fell from 8.90 per cent to 8.22 per cent during the same period.
Punjab National Bank also announced that the provisions fell 38.4 per cent quarter-on-quarter to Rs 2,753 crore. According to the bank’s statement, out of Rs 2,753 crores, Rs 2,014 crores went towards provisioning against the accounts affected by Nirav Modi fraud. Mehta said “Nothing left to provide for the fraud now.”