Punjab National Bank net up 14% on better asset quality, lower provisions
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Punjab National Bank (PNB) net profit surged to R1,305.62 crore in the third quarter, up from R1,150 crore last year. It reported strong numbers for the third quarter backed by lower provisions and improved asset quality.
Total Income of the bank rose to Rs 11,518.95 crore in the December quarter from Rs 10,435.12 crore last year. PNB share closed higher 9.37 per cent at Rs 912.45 on BSE.
PNB chairman and managing director KR Kamath said the rise in net profit was due to to decline in provisions against NPAs, higher cash recovery and lower cost of funds.
The bank's gross NPAs ratio rose to 4.61 per cent at the end of third quarter from 2.42 per cent in December, 2011. Net NPAs also rose to 2.56 per cent from 1.11 per cent in the same quarter of 2011-12.
The net interest margin (NIM) of the bank stood at 3.47 per cent at December-end 2012, and the bank is expecting to the close the fiscal with a NIM of 3.5 per cent, Kamath said. Total business as on December 31 stood at Rs 6,83,098 crore, up from Rs 6,19,122 crore at end of same quarter of the previous fiscal, registering growth of 10.3 per cent.
Total deposits rose 8.2 per cent to Rs 3,85,785 crore from Rs 3,56,517 crore last year. FE