PNB Q3 net up 13% at Rs 1,306 cr

Reduces base rate by 25 bps, gross NPAs and provisions lower compared to Q2

Punjab National Bank has posted a net profit of 13% for the quarter ended December 2012, to Rs 1,306 crore from Rs 1,150 crore in the corresponding year ago quarter.

The bank cut is base rate by 25 basis points to 10.25% from 10.5% with effect from February 9. The bank's gross non performing assets (NPAs) as a percentage of total assets increased to 4.61% (2.42%), though it declined marginally from the September-ended quarter. In the preceding quarter gross NPAs were at 4.66%.

In absolute terms gross NPAs were at Rs 13,997 crore, compared to Rs 6,442 crore in the year ago quarter, but lower than Rs 14,024 crore in the September-ended quarter.

Provisions were at Rs 802 crore, compared to Rs 946 crore last year, and lower than Rs 1,074 crore in the preceding quarter.

Deposits increased to Rs 3,85,785 crore (Rs 3,56,517 crore), an increase of 8%, while advances increased to Rs 2,97,313 crore, from Rs 2,62,605 crore, an increase of 13%.

During the quarter the bank made an additional provision of Rs 173 crore towards restructured standard advances, it said in an announcement on the BSE.

Shares of PNB were up 6.2% at Rs 886, on the BSE.