PNB Q2 profit up 13.81% on robust other income growth

However, PNB’s provisioning towards bad assets grew 13.37 per cent to Rs 3,300.69 crore.

By: ENS Economic Bureau | New Delhi | Published: October 22, 2014 1:18:12 am

Public sector lender Punjab National Bank (PNB) on Tuesday reported a 13.81 per cent rise in its net profit to Rs 575.34 crore for the second quarter this fiscal on the back of healthy growth in other income.

“In the previous quarter, we had said that our growth rate will catch up with that of the industry and by and large we have done so,” said KR Kamath, chairman and managing director, PNB, adding that recent government reforms on coal and economic revival will also have an impact on the balance sheet of banks. “But it will have a lag time,” he said.

He said that credit growth has been largely subdued. “Credit growth has been good in sectors of agriculture, retail and SMEs but there has been no pick up in corporate credit,” he said. PNB had reported a net profit of Rs 505.49 crore in the corresponding (July-September) quarter of 2013-14 and had a 10 per cent rise in its net profit to Rs 1,405.12 crore for April-June 2014-15.

For the half year from April to September 2014, the bank reported a 11.21 per cent rise in its net profit to Rs 1,980.46 crore. Net interest income rose by 3.38 per cent to Rs 4,151.19 crore in the second quarter of the fiscal as against Rs 4,015.54 crore a year ago. Net interest margin grew 3.18 per cent in Q2 and 3.3 per cent for the first half of the fiscal.

However, PNB’s provisioning towards bad assets grew 13.37 per cent to Rs 3,300.69 crore.

Gross NPAs rose to 5.65 per cent during Q2 from 5.14 per cent in the corresponding period a year ago. Net NPAs rose to 3.26 per cent from 3.07 per cent a year ago.

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