New Delhi: Sharp rise in non-performing assets (NPAs) pulled down the net profit of Punjab National Bank by 11.6 per cent to Rs 1,065.58 crore in the second quarter ending September 30. The country's second largest public sector bank had posted a net profit of 1,205.03 crore in the year-ago period.
On a sequential basis as well, the bank's net profit in the July-September period was lower than Rs 1,245.67 crore recorded in the first quarter of this fiscal ending June 30, according to a BSE filing by PNB. The main reason for poor performance of PNB is spurt in the NPAs, which are sticky loans and do not yield returns.
The gross NPAs during the second quarter rose to 4.66 per cent from 2.05 per cent in the same period last fiscal. As regards the net NPAs, the balance sheet reveals that it jumped to 2.69 per cent during the period from 0.84 per cent, it said.
In absolute terms, the gross NPAs of the bank during the second quarter worked out to be Rs 14,023 crore, up from Rs 5,150.11 crore in the same period last fiscal. The net NPAs jumped to Rs 7,883.43 crore from Rs 2,088.51 crore a year ago.
The net profit during the first six months of the current fiscal remained almost flat at Rs 2,311.25 crore. Shares of PNB were trading at Rs 754.65 a piece, down 6.18 per cent, at BSE in the afternoon session.