State-owned Punjab National Bank (PNB) posted a standalone net profit of Rs 568 crore in the fourth quarter of FY21. Sequentially, the net profit has increased 16 per cent from Rs 506 core posted in the October-December quarter. In the same quarter last year, the Delhi-based lender had reported a loss of Rs 697 crore on a standalone basis.
However, the year-on-year numbers are not comparable as Oriental Bank of Commerce and United Bank of India merged into PNB from April 1, 2020. For the complete financial year, the bank reported a net profit of Rs 2,021 crore.
The net interest income (NII) for the public sector bank jumped over 48 per cent to Rs 6,937 crore on a standalone basis. NII is the difference between interest earned by a bank through lending and interest paid to depositors.
The lender’s gross non-performing assets (NPAs) fell to 14.12 per cent in the March quarter against 14.21 per cent last year. In the October-December quarter, gross NPAs of the bank stood at 12.99 per cent. Net NPAs of the bank were at 5.73 per cent in January-March. The bank has made provisions for NPAs worth Rs 5,293 crore in the last quarter, about 15 per cent higher against the provisions made in the year-ago period.
The provisioning coverage ratio of the lender is 80.14 per cent as of March 31 against 77.79 per cent last year. The capital adequacy ratio of the lender stood at the same level as last year of 14.32 per cent.
“The extent to which the pandemic will impact the bank's results will depend on future developments, which are highly uncertain, including the success of vaccination drive,” it said.