On Friday, Country’s second-largest public bank, Punjab National Bank (PNB) has reported a net profit of Rs 308 crore in the quarter ended on June, 30. A year ago, the bank’s net profit was Rs 1,018 crore in the April-June quarter the figures can not be comparable due to the consolidation of Oriental Bank of Commerce and United Bank of India into PNB from 1 April 2020.
Due to the substantial decrease in the provisions, the bank has incurred a net loss of Rs 697.20 crore in the previous quarter. During the June quarter, total income under the review was standing at Rs 24,292 crore, compared to Rs 15,161 crore in the same period a year ago. Adequacy ratio of the bank’s capital under the Basel III norms stood at 12.63% which was 9.77% the previous year.
The bank in a regulatory filing said that its Gross Non-Performing Assets (NPAs) stood at 14.11% of gross advances during the June quarter, which was down from 16.49% in the same period the previous year. Net NPAs or bad loans of the bank were down at 5.39%, from 7.17% in the June quarter a year ago.
SS Mallikarjuna Rao, MD & CEO of Punjab National Bank said it is hoped that the banks will be black in the current financial year 2020-21 and, expected to book profits in every quarter this fiscal and the impact of Covid-19 will be seen only in March quarter.