PNB Q2 net profit falls 63% to Rs 411 crore on higher provisions

State-owned Punjab National Bank reported a 63% decline in standalone net profit to Rs 411 crore for the September quarter on account of higher provisioning for bad loans

State-owned Punjab National Bank (PNB) on Tuesday reported a 63 per cent decline in standalone net profit to Rs 411 crore for the September quarter on account of higher provisioning for bad loans.

The bank had posted a net profit of Rs 1,105 crore in the year-ago period.

Total income in the second quarter of the current fiscal increased to Rs 23,001.26 crore as against Rs 21,262.32 in the July-September period a year ago, PNB said in a regulatory filing.

The lender's interest income also rose to Rs 20,154 crore from Rs 17,980 crore in the same quarter a year ago.

The gross Non Performing Assets (NPAs) declined to 10.48 per cent of the gross advances from 13.36 per cent earlier.

In absolute terms, the gross NPAs or bad loans stood at Rs 87,034.79 crore at the end of the second quarter of FY23, compared to Rs 1,00,290.85 crore a year earlier.

The net NPA too declined to 3.80 per cent as against 5.49 per cent.

However, provisions for bad loans increased to Rs 3,555.98 crore in the July-September quarter of FY23 as against Rs 2,692.74 crore in the year-ago period.