May 16: Punjab National Bank (PNB) has posted an impressive performance in the March quarter on the back of stringent measures to control bad loans.
The bank has turned around to black in the last quarter against a huge loss in the year ago period. “Punjab National Bank reported a net profit of Rs 261.90 crore in January- March period against a loss of Rs 5,367 crore in the same period last year due to lower provisions, increased net interest margin and improved position in other income,” PNB informed stock exchanges on Tuesday. PNB shares closed up 4.55% at Rs174.55 a piece on the BSE.
Gross non-performing assets fell 0.8 % to Rs 55,370 crore as on March 31, 2017 from Rs 55,818 crore in the same period last year. However, Gross NPA still stands above 12.5 percent of total loans. Net NPA has also came down to 7.81 percent compared to 9.09 percent in the previous quarter. Provisions for bad loan fell 41.8 percent to Rs 5,734 crore.
Net interest income, or the core income a bank earns by giving loans, rose 33.09% to Rs3,683.52 crore from Rs2,767.71 crore in the year-ago period. Non-interest income surged 68.16% to Rs 3,102.80 crore from Rs1,845.18 crore in the same period last year.
Deposits grew 12.4% year-on-year to Rs 621.70 billion, while advances rose marginally 1.7% to Rs 419.49 billion.