(PTI) State-owned Punjab National Bank on Thursday reported a 70 per cent decline in standalone net profit to ₹308.44 crore in the June quarter, mainly due to higher provisioning for bad loans and decline in interest income.
The bank had posted a net profit of ₹1,023.46 crore in the year-ago period.
Total income in the first quarter of the current fiscal fell to ₹21,294 crore. In the year-ago period, it was at ₹22,515 crore, according to a regulatory filing.
The lender's interest income fell to ₹18,757 crore from ₹18,921 crore in the same quarter a year ago.
The gross Non Performing Assets (NPAs) declined to 11.2 per cent of the gross advances by June 2022 from 14.33 per cent a year ago. It was at 11.78 per cent as of March 2022.
In absolute terms, the gross NPAs or bad loans stood at ₹90,167.10 crore at the end of the first quarter of FY23 compared to ₹1,04,075.56 crore a year earlier.
The net NPA too declined to 4.26 as against 5.84 per cent in the same period of the previous year.
However, provisions for bad loans increased to ₹4,814 crore in the April-June FY23 as against ₹3,248 crore in the year-ago period.
As on June this year, the Provisioning Coverage Ratio stood at 83.04 per cent as compared to 80.26 per cent at the end of June 2021.
"Covid-19 pandemic has adversely impacted the economic activity across the globe, including the Indian economy for more than two years. The bank's results, operations and asset quality, however, have not been much affected because of the pandemic," it said.
In the latest June quarter, the bank's operating profit fell to ₹5,379.21 crore.
On a consolidated basis, the bank reported a net profit of ₹281.73 crore in the quarter ended June as against ₹1,168.33 crore a year ago.
The consolidated financial result of the bank comprises five subsidiaries and 15 associates.
The capital adequacy ratio of the bank declined to 14.62 per cent at the end of June compared to 15.19 per cent in the year-ago period.