PNB net rises 3.4%

Punjab National Bank (PNB) on Thursday reported a modest 3.44 per cent rise in net profit at Rs 1,105 crore for the quarter ended June 30, against Rs 1,068 crore in the same quarter of the previous financial year. The profit growth came down on account of a reduction in treasury income and higher provisioning against bad loans.

Total income during the quarter grew 36.9 per cent at Rs 9,399 crore, compared with Rs 6,863 crore in the year-ago period. Operating profit rose 18 per cent to Rs 2,474 crore, against Rs 2,098 crore in the same quarter a year ago. Gross non-performing assets (NPAs) went up to two per cent against 1.82 per cent at the end of June last year. Net NPAs also rose to 0.86 per cent during the year from 0.66 per cent.

Net interest income grew 20 per cent to Rs 3,155 crore. The bank's net interest margin declined to 3.84 per cent from 3.91 per cent in April-June quarter last year. “We will try to hold the net interest margin at 3.5 per cent during the year,” said PNB Chairman & Managing Director K R Kamath.