PNB reports profit of Rs 507 crore in Q2 FY20

New Delhi: State-owned Punjab National Bank (PNB) on Tuesday reported a net profit of Rs 507 crore in the July to September quarter as against a loss of Rs 4,532 crore reported in Q2 FY19.

It had reported a net profit of Rs 1,018.6 crore for the quarter ended June (Q1 FY20).

Net interest income — the difference between interest earned and interest expended — came in at Rs 4,264 crore in Q2 FY20, up 7.3 percent year-on-year from Rs 3,974 crore.

The bank’s provisions declined to Rs 3,253 crore from Rs 7,733 crore in Q2 FY19. They, however, increased sequentially from Rs 2,147 crore.

“During the quarter bank has availed dispensation for deferment of the provision in respect of frauds amounting to Rs 2580.72 crore,” the bank said in a statement.

“Accordingly, an amount of Rs 645.19 crore has been charged to profit and loss account during the quarter and Rs 1,935.53 crore has been deferred to subsequent quarter.”

Significantly, the asset quality remained poor. PNB’s gross non-performing assets (NPAs) stood at Rs 79,458 crore during July to September as against Rs 81,251 crore in the same quarter of previous fiscal.

As a percentage of total advances, gross NPAs came were 16.76 per cent in the quarter ended September 30 as against 17.16 per cent in September 2018.

Net NPAs as a percentage of total advances stood at 7.65 per cent in Q2 FY20 as against 8.9 per cent in Q2 FY19.