Punjab National Bank (PNB), a public sector bank, witnessed a remarkable surge in standalone net profit during the first quarter of the current financial year, April-June.
The net profit soared to Rs 1,255 crore, a significant leap from the previous year’s Rs 308 crore.
This remarkable growth can be attributed to a reduction in bad loans and an increase in interest income.
The bank’s total income also experienced a notable rise, reaching Rs 28,579 crore in the first quarter.
Interest income surged to Rs 25,145 crore compared to the previous year’s Rs 18,757 crore during the same period.
A substantial improvement in the bank’s non-performing assets (NPAs) was observed by the end of June 2023.
The gross NPAs reduced to 7.73 percent from the previous year’s 11.2 percent, while the net NPA decreased from 4.26 percent to 1.98 percent.
With this progress on the NPA front, the bank’s provision for bad loans decreased to Rs 4,374 crore in the April-June quarter, down from Rs 4,814 crore in the same period a year ago.
Furthermore, on a consolidated basis, PNB’s net profit also showed a positive trend, increasing to Rs 1,342 crore during the quarter compared to Rs 282 crore in the year-ago quarter.
The bank’s consolidated results encompassed those of five subsidiaries and 15 subsidiaries.
The capital adequacy ratio of the bank witnessed an improvement, rising from 14.62 percent to 15.54 percent.
The positive financial results have been well-received by investors, leading to a surge in the bank’s stock on Dalal Street.
The bank’s stock closed at Rs 60.68 on Tuesday and opened at Rs 60.92 on Wednesday, reaching a record level of Rs 62.77 during the trading session.
Ultimately, it settled at Rs 62.25 with a gain of one and a half percent at the end of the trading session.
