PNB comes out of net loss, but net profit halves y-o-y

Net profit is halved to Rs 30,636 crore for the quarter ended June 30 this year compared to Rs 72,071 crore in the corresponding period of the previous year

Punjab National Bank has earned net profit during the quarter ended June 30,2016 against net loss in the previous sequential quarter, even as it declined more than half compared to the corresponding period of 2015.

PNB's net profit more than halved to Rs 306.36 crore for the quarter ended June 30 this year compared to Rs 720.71 crore in the corresponding period of the previous year. However,  it earned net profit against net loss of Rs 5,367 crore in the quarter ended March, 30 20015-16, information filed by the bank on BSE showed.

The bank continued to reel under bad debts 

 

The Bank's gross non-performing assets rose to 13.75 per cent in the first quarter of the current financial year from 12.90 per cent in the fourth quarter of the previous financial year and 6.47 per cent from the quarter ended June 30, 2015. Similarly, PNB's net NPAs rose to 9.16 per cent from 8.61 per cent and 4.05 per cent in this period.  

Recently, the government announced capital infusion to the tune of Rs 2,816 crore in PNB out of total Rs 22,915 crore in 13 PSU banks.