 "Punjab National Bank up 8% as Q2 profit beats estimates")
Punjab National Bank (PNB) moved higher by 8% to Rs 212 on the BSE in noon deals after the bank reported a better than expected net profit at Rs 561 crore in September quarter (Q2FY18). Analysts on an average expected profit of Rs 298 crore for the quarter. The state-owned bank had profit of Rs 549 crore in a year ago quarter.
The assets quality of the bank improved sequentially as well as yearly with gross NPAs as a percentage of advances stood at 12.31% and net NPAs at 8.44 per cent as of end-September 2017. The gross NPAs and net NPAs were at 13.66% and 8.67%, respectively, in Q1FY18. It was 13.63% and 9.10%, respectively, in Q2FY17.
Net interest income (interest earned minus interest expended) grew by 3.5% to Rs 4,015 crore in Q2FY18 against Rs 3,880 crore in the corresponding quarter of previous fiscal.
Meanwhile, the board of directors of PNB on Thursday, November 2, 2017, has authorized the management to partially sell its stake in PNB Housing Finance Ltd. PNB Housing Finance Ltd will continue to be a core associate of Punjab National Bank.
Further, consequent upon the exercise of call option by the Principal Group, board also approved to offload its entire stake in Principal PNB Asset Management Company and Principal trustee Company Pvt Ltd to the Principal group.
The assets quality of the bank improved sequentially as well as yearly with gross NPAs as a percentage of advances stood at 12.31% and net NPAs at 8.44 per cent as of end-September 2017. The gross NPAs and net NPAs were at 13.66% and 8.67%, respectively, in Q1FY18. It was 13.63% and 9.10%, respectively, in Q2FY17.
Net interest income (interest earned minus interest expended) grew by 3.5% to Rs 4,015 crore in Q2FY18 against Rs 3,880 crore in the corresponding quarter of previous fiscal.
Meanwhile, the board of directors of PNB on Thursday, November 2, 2017, has authorized the management to partially sell its stake in PNB Housing Finance Ltd. PNB Housing Finance Ltd will continue to be a core associate of Punjab National Bank.
Further, consequent upon the exercise of call option by the Principal Group, board also approved to offload its entire stake in Principal PNB Asset Management Company and Principal trustee Company Pvt Ltd to the Principal group.
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