PNB slips over 6% as asset quality worsens in Q2, provisions rise 5% QoQ

Punjab National Bank declined 5.7 per cent to Rs 64.30 on the BSE on Tuesday after the bank's asset quality worsened in the September quarter of  FY20. 

The bank's gross non-performing assets (GNPA) ratio increased to 16.76 per cent in the recently concluded quarter from 16.49 per cent reported in Q1FY20. In absolute terms, the GNPA stood at Rs 79,459 crore, up 2.8 per cent YoY, from Rs 77,267.3 crore reported in Q2FY19. Similarly, NNPA increased to 7.65 per cent from 7.17 per cent. In firgures, the amount came in at Rs 32,658.7 crore, up 8.2 perr cent YoY, from Rs 30,179.7 crore.

The asset quality, however, remained stable on a yearly basis. The GNPA was 17.16 per cent in the corresponding quarter of the previous fiscal, while the NPA was 7.65 per cent.

The public sector lender's slippages jumped 38 per cent sequentially from Rs 5,412 crore reported in Q1FY20 to Rs 7,460 crore in the quarter under review, the bank's management said.
 

PNB, however, reported a net profit of Rs 507.1 crore in the quarter under review, as against a loss of Rs 4,532.35 crore reported in Q2FY19. The metric beat analyusts expectations, who had on average, anticipated loss of Rs 1,500 crore. The net interest income (NII) came in at Rs 4,263.8 crore, up 7.3 per cent YoY from Rs 3,974.1 crore.

The bank's provisions for NPA declined from Rs 7,733.2 crore reported in Q2FY19 to Rs 3,253.3 crore in Q2FY20. They, however, increased sequentially from Rs 2,147.1 crore. 

The lender's overall provisions and contingencies stood at Rs 2,928.90 crore, up 44 per cent QoQ from Rs 2,023.31 crore made in June quarter, but down 70 per cent YoY from Rs 9,757.90 crore made in the year-ago quarter.

At 2:50 PM, the shares were trading 5.2 per cent lower at Rs 64.65 apiece, as against a 0.23 per cent decline in the S&P BSE Sensex.