PNB's Q4 net profit rises to Rs 262 cr on higher net interest income

Bank registered a net loss of Rs 3,974.3 cr in the same quarter in FY16

Public sector lender Punjab National Bank(PNB) posted a net profit of Rs 261.9 crore in the fourth quarter tha ended on March this year, as against a net loss of Rs 5,367.1 crore in the same quarter in the previous financial year.

Profits accrued due to a sharp rise in the company's net interest income and a simultaneous fall in its provisions.

Its stock was trading 5 per cent up at Rs 175 per share on Bombay Stock Exchange.

In FY17, PNB posted a net profit of Rs 1,324.8 crore as against a net loss of Rs 3,974.3 crore in the previous year.

For the reporting quarter its net interest income rose by 33 per cent to Rs 3,683 crore from Rs 2,768 crore in the January-March period in 2016.

Provisions for non-performing asset (NPAs) were down sharply at Rs 4,910.3 crore in Q4 from Rs 10,773 crore in the corresponding quarter in FY16. The provision coverage ratio was 58.57 per cent at end of March.

Gross NPAs were down at Rs 55,370 crore from Rs 55,813 crore in the same quarter in the year-ago period.

The capital adequacy ratio stood at 11.66 per cent with tier I of 7.87 per cent.