Punjab National Bank (PNB)'s net profit surged 22.4% to Rs 620.81 crore in Q2 September 2020 from Rs 507 crore recorded in Q2 September 2019.
The bank's total income grew by 50.7% to Rs 23,438 crore in Q2 September 2020 over Q2 September 2019. Profit before tax (PBT) rose 54% to Rs 978.76 crore in Q2 September 2020 as from Rs 633 crore in Q2 September 2019. Tax expense for the quarter spurted 184.09% at Rs 357.95 crore as against Rs 126 crore in Q2 September 2019.Net Interest Income (NII) for the quarter grew by 29.3% to Rs 8,393 crore from Rs 6,492 crore in the corresponding quarter of the previous year. The Q2 result was declared after market hours yesterday, 2 November 2020.
The bank's gross non-performing assets (NPAs) stood at Rs 96,313.94 crore as on 30 September 2020 as against Rs 1,01,849.34 crore as on 30 June 2020 and Rs 79,458.09 crore as on 30 September 2019.
The ratio of gross NPAs to gross advances stood at 13.43% as on 30 September 2020 as against 14.11% as on 30 June 2020 and 16.76% as on 30 September 2019. The ratio of net NPAs to net advances stood at 4.75% as on 30 September 2020 as against 5.39% as on 30 June 2020 and 7.65% as on 30 September 2019.
Provision and contingencies spiked by 60% to Rs 4,696.15 crore in Q2 FY21 from Rs 2,928.90 crore in Q2 FY20. The Provisioning Coverage Ratio as at 30 September 2020 works out to 83%.
The Supreme Court of India vide interim order dated 3 September 2020 directed that accounts which were not declared as NPA till 31 August 2020 shall not be declared as NPA till further orders. However, as a measure of prudence, the bank has made a contingent provision of Rs 180 crore in respect of accounts that were not classified as NPA which includes provision for interest income aggregating to Rs 85 crore reckoned in operating profit.
The bank's CASA Ratio improved to 44.1% in Q2 September 2020 from 41.57% in Q2 September 2019.
Shares of PNB were trading 1.25% lower at Rs 27.55 on BSE. PNB is a public sector bank. The Government of India held 85.59% stake in the bank as on 30 September 2020.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
