PNB second quarter results
PNB Q2 results

Relatability

Your customers will always be human, always have an empathic approach in how you treat guests. You will profit more on relatability than just revenue." ― Janna Cachola

PNB Q2 results PNB Q2 results

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Healthy variations

Net profit rises 22% to Rs 621 crore, NIM improves to 3.21%

Thesynergyonline Banking Bureau

NEW DELHI, NOVEMBER 02 : India's second-largest lender, Punjab National Bank (PNB), on Monday posted a 22 per cent increase in standalone net profit to Rs 621 crore for the July-September quarter against Rs 507 crore seen in the year-ago period.

PNB Q2FY21 results Festive season to lift economic spirits: PNB MD and CEO

Festive season bodes well

PNB MD and CEO :

The festive season will signal the economic revival and maintained the overall credit growth to grow at 4-6 per cent for the current fiscal though a more realistic picture will be known by December 2020. However, both home and auto loans have gained momentum and are heading to the pre-Covid-19 levels. Corporate loans also show resurgence, especially those from roads, steel, cement, healthcare and parts of infrastructure industries. He said the demand remains healthy and may improve further in the coming days.

" I am not unduly worried about SMA-2 book as there are not many demands for loan restructuring. Regarding the retail and MSME loan restructuring overall Rs 20,000 crore may be restructured by December 31 , but it could be much lesser than originally estimated. The Bank was adequately capitalised and not looking at any fund raising. " —PNB MD & CEO Mr CH S S Mallikarjuna Rao

PNB Q2 results

The performance

The bank's performance was a solid 101 per cent quarterly increase from the plunge in net profits to Rs 308 crore reported in the first quarter of the fiscal.

Deposits grew 4% YoY to Rs 10.55 lakh crore in the September quarter, compared to Rs 10.14 lakh crore in the corresponding quarter last financial year. Domestic current account savings account (CASA) ratio increased 253 bps YoY to 44.10%, compared to 41.57% as on September 30, 2019.

The net interest margin (NIM) of the lender increased 63 bps to 3.21%, compared to 2.58% in the corresponding quarter of the last financial year. NIM improved 71 bps quarter-on-quarter (q-o-q) basis, compared to 2.5% in the June quarter. The cost of funds improved 69 bps to 3.8%, compared to 4.49% in the September quarter last year.

"To do what profits is eternity." ― Miriam Lichtheim, Ancient Egyptian Literature, Volume I: The Old and Middle Kingdoms

Net NPAs

Net NPAs fall to 4.75 %; provisioning for bad loans rise to Rs 3,811 crore

The public lender's net interest income rose to Rs 8,393 crore for the quarter ended September.

Advances

Advances remained flat in the September quarter at Rs 7.16 lakh crore, compared to Rs 7.12 lakh crore as in September 2019. The retail loan portfolio grew 3.85% YoY to Rs 1.3 lakh crore, compared to Rs 1.25 lakh crore in the September quarter last financial year.

Capital adequacy ratio

Capital adequacy ratio of the bank stood at 12.84 per cent for the second quarter, a marginal improvement from 12.63 per cent at the end of June but lower than the 14.07 per cent posted in the second quarter of FY20.e also served as Executive Director of the North-Eastern Region from 2015 – 17.

Asset quality

PNB's asset quality improved on a sequential basis. Gross non-performing assets (NPAs) during the quarter were at 13.43% of gross advances as against 14.11% in the June quarter. Net NPAs during the September quarter eased to 4.75% from 5.39% in the previous quarter.astern Region from 2015 – 17.

Provisioning

Provisions for bad loans rose to ₹3,811.17 crore in the quarter, against ₹3,253.32 crore in July-September 2019.

Total income

The bank's total income during July-September rose to ₹23,438.56 crore as against ₹15,556.61 crore in the year-ago period, PNB said in a regulatory filing.d and Odisha along with RGGVY and APDRP projects in Bihar. He also served as Executive Director of the North-Eastern Region from 2015 – 17.

Asset quality

PNB's asset quality improved on a sequential basis. Gross non-performing assets (NPAs) during the quarter were at 13.43% of gross advances as against 14.11% in the June quarter. Net NPAs during the September quarter eased to 4.75% from 5.39% in the previous quarter.