The country’s second-largest public sector lender, Punjab National Bank (PNB), on Monday reported a 17.9% year-on-year (y-o-y) drop in the net profit during the September quarter to Rs 621 crore on higher provisions. The bank’s operating profit, however, increased 7.1% year on year (YoY) to Rs 5,675 crore, but remained flat sequentially.
Provisions increased 11% YoY to Rs 5,054 crore, but they remained flat sequentially. The lender’s net interest income (NII) increased 29.2% YoY and 24% sequentially to Rs 8,393 crore.
The bank’s asset quality showed an improvement in the second quarter. Gross non-performing assets (NPAs) ratio improved 68 basis points (bps) to 13.43%, compared to 14.11% in the previous quarter. Similarly, net NPAs ratio came down 64 bps to 4.75% from 5.39% in the June quarter. The bank has not…