Shares of the state-owned Punjab National Bank (PNB) fell 10% at the opening of trade on Thursday after the country’s second-largest lender reported net profit of Rs. 1,105.2 crore for the second quarter significantly lower than expectations while net interest income was also lower than expectations at Rs 6,352.8 crore.
At 10:15 am, PNB shares were trading down 8.10%, or 3.75 points lower, to Rs 42.55 on BSE.
PNB shares hit a new 52-week high on Tuesday, regaining a market capitalization of Rs 50,000 (m-cap) on the basis of a stable outlook.
The bank’s total income in the July-September quarter fell to Rs.21,262.32 crore from Rs.23,279.79 crore in the corresponding period last year, PNB said in a filing. regulatory.
PNB’s operating profit fell to Rs 4,021.12 crore from Rs 5,674.91 crore in the same quarter last year. In terms of asset quality, the lender’s gross non-performing assets (APM) increased slightly to 13.63% of gross advances at end-September 2021, compared to 13.43% the previous year.
Net NPA also rose to 5.49% from 4.75% a year ago.
However, provisions for bad debts decreased to Rs 2,692.74 crore in the quarter from Rs 3,811.17 crore in July-September 2020. Provisions (other than tax) and contingencies decreased to 3 Rs 261.37 crore versus Rs 4,696.15 crore at the end of the second quarter. from the previous year.
First publication: STI